A group of Republican lawmakers is urging the Biden administration to ban leading Chinese battery manufacturers from exporting goods to the United States, alleging these companies use forced labor in their supply chains. This move targets Contemporary Amperex Technology Co. Ltd. (CATL), the world's largest battery maker for electric vehicles and a key partner to Ford, and Gotion High-Tech, partially owned by Volkswagen.
In letters addressed to the Department of Homeland Security Undersecretary Robert Silvers, the lawmakers requested that CATL and Gotion be added to the entity list under the Uyghur Forced Labor Prevention Act. This list is designed to prevent companies involved in forced labor from exporting goods to the U.S. The letters were sent by notable figures including Rep. John Moolenaar, head of the House Select Committee on the Chinese Communist Party; Rep. Mark Green, chairman of the House Homeland Security Committee; Sen. Marco Rubio; and others.
The lawmakers' allegations focus on the use of forced labor from China's Xinjiang region, where Uyghur and other minority groups are reportedly subjected to human rights abuses. They claim both CATL and Gotion have ties to the Xinjiang Production and Construction Corps, a paramilitary organization accused of employing forced labor. The U.S. has already sanctioned this group and included it on the entity list.
CATL has denied these allegations, stating, "Any suggestion that CATL has used forced labor, or has any connection to forced labor, is absolutely false." The company emphasized its commitment to maintaining a responsible supply chain. Gotion, Ford, and Volkswagen did not immediately respond to requests for comment.
The implications of being added to the entity list are significant, as it would severely hamper the efforts of these companies to establish a foothold in the U.S. market. Ford had to pause and later scale back its plans for a $3.5 billion battery plant in Michigan using CATL technology due to investigations initiated by Republican-led committees. These committees argued that the project would enable Chinese domination of the U.S. auto industry. Similarly, Gotion's plans to build its own factory in Michigan have faced intense scrutiny.
Volkswagen has also faced issues, with several of its vehicles being held up at U.S. ports after components from a company on the entity list were found in its supply chain. The company has been repeatedly criticized for its joint venture factory in Xinjiang with a Chinese state-owned company.
This push to add CATL and Gotion to the entity list under the Uyghur Forced Labor Prevention Act underscores the growing tension between the U.S. and China, particularly in the tech and automotive sectors. It also highlights the increasing scrutiny Chinese clean energy manufacturers face as they attempt to expand in the U.S.
The Department of Homeland Security has stated that it will continue to respond appropriately to Congressional oversight and address the concerns raised by the lawmakers. This situation remains fluid, with potential significant impacts on the U.S. electric vehicle market and the broader geopolitical landscape.
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