A budget amendment to ban giving Michigan taxpayer dollars to Chinese Communist Party-linked companies was defeated by Senate Democrats on Thursday.

The amendment, introduced by state Sen. Roger Hauck (R), said, “No appropriations in part 1 may be expended on, or obligated to, economic development projects that involve or include a business entity supportive of the Chinese communist party as reflected in that business entity’s bylaws or articles of incorporation.”

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The amendment was presumably in reference to Gotion High-Tech, a Chinese company with documented links to the CCP in its articles of association. Gov. Gretchen Whitmer (D) and legislative Democrats have backed giving $715 million in taxpayer cash and tax incentives to the battery maker looking to build a massive plant near Big Rapids.

Chapter VI of Gotion High-Tech’s Articles of Association (page 47) establishes a “Party Committee,” whose sole purpose is to ensure the company is adhering to Communist Party doctrine and furthering its objectives.

“The Party Committee of the Company shall perform its duties in accordance with the Constitution of the Communist Party of China and other Party regulations,” including, “Ensure and supervise the implementation of the Party’s guidelines, principles and policies in the Company, and implement major strategic decisions of the CPC (Communist Party of China) Central Committee and the State Council as well as relevant important work arrangements of the Party organization at the higher level”.


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The Gotion corporate document also states that the company’s Party Committee shall “Strengthen the construction of Party organization and Party members at the grass-roots level of the Company” and oversee growing the “Communist Youth League and other mass work of the Company”.

Hauck’s amendment failed by a 20-18 party-line vote:

“The amendment could not have been more straight forward,” state Sen. Lana Theis (R) said in a statement to The Midwesterner.” Senate Republicans believe taxpayer dollars should not be doled out to corporations that pledge allegiance to the Chinese Communist Party. Apparently, Senate Democrats disagree.”