A Republican lawmaker called on the Biden administration to investigate a Chinese government-tied company that plans to build a facility near several Midwest military sites, according to a letter shared exclusively with the Daily Caller News Foundation on Monday.
Rep. Jake LaTurner of Kansas sent a letter to the Department of Defense and Treasury Department expressing “strong concerns” about Cnano Technology USA Inc. (Cnano USA), which is planning to build a $95 million manufacturing facility for liquid conductive paste near at least four military installations in and around his state. Cnano USA’s China-based parent company has close ties with the Chinese Communist Party (CCP) and has participated in a state-run program that works to acquire American technology to support the development of China’s military, LaTurner’s letter states, citing a recent DCNF investigation.
“Cnano Technology USA, which is a subsidiary of Cnano Jiangsu Technology Co., Ltd. has been authorized to proceed in the development of their commercial space southwest of the Kansas City metropolitan area — approximately 21 miles from the Kansas City National Security Campus, 35 miles from Fort Leavenworth, 70 miles from Whiteman Air Force Base and 105 miles from Fort Riley,” LaTurner’s letter states.
“I urge CFIUS to review this investment in Kansas and ask that you take into consideration the implications for our supply chain integrity and the potential risk of foreign investment in close proximity to our military bases,” LaTurner’s letter states.
‘Significant Ties To The CCP’
LaTurner’s letter calls on the Biden administration “to prevent CCP-backed companies from expanding their foothold in American supply chains.”
“I have strong concerns about granting a company with proven and significant ties to the CCP permission to operate as a critical component supplier to the burgeoning field of electronics and battery production, particularly so close to sensitive military and national security assets,” LaTurner’s letter states.
Chinese government-backed companies operating facilities in the U.S. pose a range of national security threats to America’s supply chain, Emily de le Bruyere, China Program senior fellow at the Washington, D.C.-based think tank, Foundation For Defense Of Democracies, told the DCNF.
“When dealing with China, you have to look beyond however it is that things are presented, because there likely are other risks lingering behind that facade,” de le Bruyere told the DCNF. “Building here gives them an opportunity to get around U.S. efforts to defend our industrial base and our system from China and also gives China the opportunity to take advantage of U.S. incentives to manufacture in the country.”
The CCP seeks to “establish leverage over the transportation industry” as well as “new energy and autonomous revolutions in the field” because Beijing believes dominating these sectors will provide China with an opportunity to “leapfrog the existing system and incumbents,” de le Bruyere said.
“China might not be as competitive in legacy vehicles, but it can shape the playing field in electric vehicles, and then control the value chains for those and claim commercial champions in the field, and even potentially down the road, to find the infrastructures for an electric autonomous vehicle system or transportation system generally,” said de le Bruyere.
‘Wolf In Sheep’s Clothing’
LaTurner’s letter to the Biden administration likewise warns that “Cnano Jiangsu has repeatedly received funding from the Chinese government for participation in state initiatives, including in the CCP’s 863 Program that the U.S. Director of National Intelligence has stated ‘provides funding and guidance for efforts to clandestinely acquire U.S. technology and sensitive economic information.’”
The 863 Program focuses on developing “both military and civilian science and technology” for China, according to a report from the Select Committee of the United States House of Representatives.
Cnano Jiangsu removed all mention of the firm’s involvement in the 863 Program from the “About Us” page on its website less than a week after the DCNF’s investigation was published, the DCNF subsequently revealed.
LaTurner’s letter also notes that Cnano Jiangsu has “cooperated in the past with the CCP’s United Front Work Department,” whose operations are a “blend of engagement, influence activities and intelligence operations” that the CCP employs to shape policy toward China and “gain access to advanced foreign technology,” according to the Select Committee on the CCP.
Among other ties, Cnano Jiangsu’s CEO, Zheng Tao, who also heads Cnano USA, attended a United Front Work Department event in China for “Overseas Chinese enterprises” in 2021, the DCNF reported based on research conducted by The Heritage Foundation Oversight Project and Heritage Action.
“Cnano USA is a wolf in sheep’s clothing and a clear threat to America’s national and economic security,” LaTurner said.
Cnano USA, Cnano Jiangsu, the Treasury Department and DOD did not respond to the DCNF’s request for comment.
Philip Lenczycki on January 8, 2024
