There is a new bipartisan consensus that the People’s Republic of China represents the most significant national security threat facing the United States. As tensions grow between Beijing and Washington, China has deployed a sophisticated subnational strategy to gain influence at the state and local levels, exploit vulnerabilities, and forge greater U.S. dependence on China. As detailed in a July 2022 memo from the National Counterintelligence and Security Center, President Xi Jinping has increasingly sought to exploit these China-U.S. subnational relationships to influence U.S. policies and advance PRC geopolitical interests.”
China’s subnational efforts have culminated into strategic land purchases near sensitive military sites, joint-projects on electric vehicle (EV) battery factories, the establishment of Confucius institutes at American universities, and more. Beijing has a robust and well-tested playbook to manipulate, influence, and harm U.S. national security interests at the state and local level.
Case Study: Michigan
The State of Michigan has emerged as an epicenter for PRC/CCP subnational incursion. Over the last year, two companies with ties to the PRC/CCP have aimed to penetrate the U.S. electric vehicle battery market in Michigan. Contemporary Amperex Technology Co., Limited (CATL) has collaborated with Ford Motor Company to initiate a lithium iron phosphate (LFP) battery facility in Marshall, Michigan. Simultaneously, Gotion High Tech is setting its sights on constructing an EV battery plant in Green Township and Big Rapids Charter Township, Michigan.
These ventures introduce a spectrum of national and economic security concerns, encompassing espionage, influence campaigns, and a growing U.S. energy reliance on China. In these scenarios, state and local officials, either due to a lack of education and information, limited awareness or diminished concerns about the PRC/CCP’s objectives and tactics, have actually incentivized these business deals with generous tax breaks and funding, favoring “job creation” and economic growth no matter other impacts.
Counter efforts led by Secure Our States Coalition have included information sharing, galvanizing grassroots opposition, mobilizing state and local leaders to action and advising them along the way, and robust media engagement.
Due to such effort, six local officials in Michigan involved in supporting the Gotion project were recalled, and the ordinance passed in support of the project for the essential water and sewer infrastructure was repealed . The Gotion project is now facing an uncertain future in Michigan. But the threat is spreading. Gotion High Tech has recently announced a plant in Illinois, and CATL is exploring opportunities to expand into Texas. Beyond the EV sector, the PRC/CCP is increasing land U.S. purchases and seeking new opportunities to increase U.S. reliance on Beijing and achieve its subnational objectives.
