A Chinese battery giant has sued a small Michigan town over its opposition to plans to build a $2.4 billion factory in its community, sparking accusations that it is trying to “intimidate” residents. so that they submit.
Gotion, who “pledges allegiance” to the Chinese Communist Party (CCP), escalated his war against Green Charter Township on Friday by filing a federal lawsuit accusing local officials of trying to illegally derail the project.
The dispute centers on an agreement between Gotion and the previous city council, which was forced out by residents in recall elections in November due to its support of the project.
Gotion has now accused the new board, which opposes the project on national security and environmental grounds for failing to honor a contract that allows it access to essential water supplies.
The trial marks a dramatic escalation in a fight that has sparked fierce debate over the perception of Chinese infiltration into American society.
Residents of idyllic Green Charter Township, Michigan, are leading a fight against a China-linked battery company being built in their community. (LR) Residents Kelly Cushway, Lori Brock, Debbie Diegert and Jeff Thorne protest the deal.
A graphic rendering of the battery factory Gotion is seeking to build in Green Charter Township
The city is divided over whether the project will boost the local economy or threaten national security and harm the environment.
Township Administrator Jeff Thorne described it as an “aggressive move,” accusing the Chinese company of trying to bully residents into submission.
“They are flexing their muscles,” he told DailyMail.com. “It’s a bully pit move. They’re trying to say, “We’re big, we’ve got a lot of money, and we’re going to sue you in Federal Court.”
“They assume we don’t have the time or resources to counter this.
“But this is not true. We rolled up our sleeves. We’re in this for the long haul.
The site is already under construction and Gotion completed the purchase of 270 acres of land in the community in August of last year.
The company says the project will create 2,350 “good-paying” jobs in the city, located about 60 miles north of Grand Rapids.
It also stands to benefit from $175 million in state tax incentives and a 30-year tax abatement worth an estimated $540 million as part of its settlement in Mecosta County .
But politicians and residents have expressed concerns about allowing a CCP affiliate to set up shop at a site just 100 miles from a U.S. military camp where the Michigan National Guard trains troops from Taiwan – a territory neighboring China. Some security experts, including the US military, say Beijing is preparing to invade.
They also cited environmental concerns, opposing the construction of an industrial plant in an idyllic rural area where rivers feed Michigan’s Great Lakes.
In November, residents kicked out their township board in seismic recall elections and replaced officials opposed to the project in their place.
Physical therapist Jeff Thorne, 64, who was elected city administrator last year, accused Gotion of trying to “intimidate” residents into accepting his plans for a giant electric vehicle battery factory.
Jason Kruse, pictured here, led a revolt against the local government in Green Charter Township on Tuesday after supporting China-linked company Gotion.
Planned to be built on the outskirts of Big Rapids, the planned plant would be located just a few miles from one of the state’s National Guard bases.
A billboard expresses the feelings of many residents of the town of 3,200, who oppose the construction of a battery factory in the area by CCO subsidiary Gotion.
Led by Supervisor Jason Kruse, the new board made it clear they wanted to stop construction.
But Gotion has already suggested that resistance was futile, with the project having already been approved by the previous board in a binding agreement.
His lawsuit suggests, however, that he fears the board’s actions could derail his plans.
In its filing, the company claimed the township waived its contractual obligations after initially passing a resolution approving the company’s plans to connect the Big Rapids water system to the project.
The resolution, adopted by the former board of directors, has since been abandoned by its successors.
Gotion said water resolution “is a critical component of the project’s success,” with a potential need of up to 715,000 gallons per day in the initial phases of the operation.
She is asking the court for a preliminary injunction to order the township to connect water pipes to her plant.
“To prevent the municipality’s sudden recalcitrance from derailing an effort already years and millions of dollars in the making, this court should order the municipality to comply with its obligations under the parties’ agreement,” Gotion said.
The lawsuit, filed in the U.S. District Court for the Western District of Michigan, highlighted the new city council’s hostility toward the project, citing comments Kruse made to DailyMail.com last year in which he declared that he was “100% arrestable”. .
The board supervisor added Monday that he was “saddened and disheartened” by Gotion’s decision to sue the township.
“This is a classic case of David versus Goliath,” he told DailyMail.com. “We will not be intimidated by a big corporation that will not allow us to have a say in what happens in our township.”
Trustee Thorne said the board’s view was that the contract between Gotion and their predecessors was “null and void” because it was not “properly executed.”
He said the proposal never came back for second reading or was fully considered by residents.
China owns 383,935 acres of agricultural land in the United States as of December 2021, almost half of which is in Texas.
Although it is backed by Volkswagen and operating in Germany, Gotion’s parent company is based in China.
Critics of the Michigan project have pointed to a clause in its business documents that states the company will “establish a party organization and carry out party activities in accordance with the constitution of the Communist Party of China.”
The company has publicly denied allegiance to the Communist Party, but China has taken steps in recent years to strengthen the CCP’s influence in Chinese businesses, where maintaining party unity is often required by law.
In a statement Friday evening, Chuck Thelen, vice president of North American manufacturing at Gotion Inc., expressed regret that the lawsuit was necessary.
“It is unfortunate that Gotion had to resort to litigation to get the municipality to meet its obligations under the agreement,” Thelen said. “We are unable to comment further as this is now an ongoing legal matter.”
PCC has a stake in 383,935 acres of U.S. farmland as of December 2021, according to the latest figures released by the U.S. Department of Agriculture.
It sparked a national debate over why the United States is allowing a hostile state to buy vital land across the country, amid concerns about espionage and security.