The U.S. Department of Defense (DOD) must add a China-based battery manufacturer and technology company to its list of “Chinese military companies” having ties to the communist government and its armed wing, the People’s Liberation Army, said U.S. Rep. John Moolenaar (R-MI) on Wednesday.
Contemporary Amperex Technology Co. Ltd. (CATL) should immediately be placed on the list required under Section 1260H of the National Defense Authorization Act for Fiscal Year 2021, which provides transparency on Chinese military companies operating in the United States in order to counter the Chinese Communist Party’s (CCP) Military-Civil Fusion (MCF) strategy, said Rep. Moolenaar.
“As you are aware, the criteria for placement on the Section 1260H List stipulate that a company must be actively involved in bolstering Beijing’s military ambitions and contributing to MCF — while also operating in the United States. CATL squarely fits these requirements,” wrote Rep. Moolenaar and a colleague in an Aug. 28 letter sent to U.S. Defense Secretary Lloyd Austin.
Not only has Congress repeatedly exposed CATL’s “nefarious activities” in the U.S., the lawmakers wrote, but DOD has sounded the alarm on the dangers of the company operating on military bases due to its deep ties with the CCP.
“CATL’s placement on the Section 1260H List is long overdue and justified,” the lawmakers wrote.
They cited a report from the Foundation for Defense of Democracies revealing that CATL has received preferential treatment by the CCP that includes subsidies, tax incentives, favorable procurement deals, and additional policy benefits.
“These benefits propelled CATL toward its massive 37.5 percent share of the global electric vehicle (EV) battery market, which the company boasted about on X just last month,” wrote Rep. Moolenaar and his Republican colleague, U.S. Sen. Marco Rubio (R-FL).
Reliance on CATL, which is a key contributor to China’s military-civil fusion policy to enhance the capabilities of its military, for its EV batteries endangers U.S. national security by making the nation dependent on the CCP for energy infrastructure, according to their letter.
“U.S. policymakers have a duty to stand in resolute opposition to any effort by America’s adversaries that threaten our national and economic security,” the members wrote. “By including CATL on the Section 1260H List, the DOD would not only safeguard America’s military infrastructure from exposure to the [People’s Liberation Army], it would also send a powerful signal to U.S. companies who are currently weighing partnerships with CATL.”