us-lawmakers-urge-def-secy-austin-for-ban-on-china-s-catl

A group of US lawmakers is urging the Defence Secretary, Lloyd Austin, to take immediate action against China's leading battery maker, Contemporary Amperex Technology Limited (CATL). 

The lawmakers, including John Moolenaar, Chairman of the Select Committee on the Chinese Communist Party (SCCCP), and US Senator Marco Rubio, want CATL to be added to a list that subjects Chinese companies to increased scrutiny under the National Defense Authorization Act (NDAA).

This list, known as the Section 1260H List, aims to identify Chinese military companies operating in the United States. It also helps the US government counter China’s Military-Civil Fusion (MCF) strategy, which involves integrating civilian industries with military objectives. According to the SCCCP, CATL fits the criteria for this list because of its involvement in supporting China’s military ambitions while also doing business in the US.

CATL is a major player in the electric vehicle battery industry and is closely linked to the Chinese Communist Party (CCP) and its military arm, the People’s Liberation Army (PLA). The lawmakers argue that CATL’s activities directly contribute to China’s MCF strategy, which seeks to boost the military’s capabilities through civilian partnerships.

The lawmakers are concerned that relying on CATL batteries poses a threat to US national security. They believe that dependence on a company with ties to the CCP could make the US vulnerable in future conflicts.

The lawmakers also highlighted that Congress has repeatedly exposed CATL’s questionable activities in the US, making its inclusion on the Section 1260H List both necessary and overdue.

The SCCCP’s statement points out that CATL has benefited significantly from subsidies, tax incentives, and favorable procurement deals provided by the Chinese government.

These advantages have helped CATL achieve a dominant 37.5% share of the global electric vehicle battery market. The company’s success is seen as part of China’s broader strategy to integrate civilian industries with military needs.

Moreover, CATL has formed partnerships with other companies already on the Section 1260H List. For instance, in December 2023, CATL announced a formal partnership with China Mobile, a company identified by the US Department of Defense as a Chinese military company.