Obama’s Defense Secretary: “What the Hell Is Going On” With Gotion?

Today, at a hearing of the House Select Committee on the Chinese Communist Party, former Obama administration Defense Secretary Leon Panetta and former Trump administration Secretary of State Mike Pompeo said under oath that Gotion is a national security risk to the United States and that its plans to build a factory in Michigan could expose the country to espionage or worse. They also said it was unwise for federal, state, and local tax incentives to be offered to Gotion. The two national security experts gave these opinions in response to questioning from Congressman John Moolenaar, a member of the Select Committee.

“President Obama’s Defense Secretary and President Trump’s Secretary of State just testified under oath that Gotion and its plans in Michigan are a national security risk. They know how the Chinese Communist Party operates and how it uses resources in America to hurt our country. They also said that it undermines our national security for states and communities to give tax subsidies to those companies. State and local economic development officials in Michigan need to listen to these experts and end the Gotion project,” said Moolenaar after the hearing.

At the hearing, Moolenaar asked the officials about Gotion’s plan to bring 20-50 CCP nationals to Michigan.

“I don’t think there’s any question that they are going to take advantage of that situation and I think we have to be very vigilant about what the hell is going on. That’s just the way they operate. They will establish a manufacturing unit. They’ll establish whatever they can, and then they will use that for their own intelligence purposes,” said Panetta, the former Obama Defense Secretary.

“I think it is worse than the fact that they will engage in espionage. I think that’s just top of the list. They will use this in ways that will leverage Chinese advantage. These plans are deeply dangerous to our national security and ought not be built,” said Pompeo, the former Trump Secretary of State.

Moolenaar continued his questioning by asking Panetta and Pompeo if they believe American tax dollars should go to CCP-affiliated companies. Both witnesses said it is irresponsible to provide support to companies that would undermine national security.

A video of Moolenaar's questioning can be found here, and a transcript can be found below.

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Congressman John Moolenaar: Alright gentlemen, thank you and I will be very quick. I Appreciate your service. There is a Chinese company building an electric vehicle battery plant in my district. As part of the project, they plan to bring 20-50 Chinese nationals to Michigan. What do you feel are the odds of those nationals may engage in espionage for the CCP while they are in the United States? I know you’ve both been involved in looking at these kinds of things. Secretary Pompeo, you were issuing work visas to Chinese nationals as part of the State Department. I wondered if you’d both comment on that.

Secretary Leon Panetta: Look, I don’t think there’s any question that they are going to take advantage of that situation and I think we have to be very vigilant about what the hell is going on. That’s just the way they operate. They will establish a manufacturing unit. They’ll establish whatever they can, and then they will use that for their own intelligence purposes. They will use that for their own economic purposes. They’ll use it to be able to gain the kind of advantages that they want, that are counter, frankly, to the interests of the United States. I think it is very important in those situations, to make sure that we are, that the United States, and that our intelligence capabilities are being used to make sure that we know what they are doing, that could hurt the United States.

Secretary Michael Pompeo: I think it is worse than the fact that they will engage in espionage. I think that’s just top of the list. They will use this in ways that will leverage Chinese advantage. These plans are deeply dangerous to our national security and ought not be built.

Moolenaar: Thank you. And then one last question; one of the concerns, you’ve talked about the Belt and Road Initiatives, China spreading money around. One of the concerns I’ve had is, in some of our, like in the Inflation Reduction Act, we provide green energy tax credits. This company would actually likely be applying for a green energy tax credit, so we could actually be supplying American taxpayer dollars to fund this project. Do you have any thoughts on that?

Pompeo: Yes, I’m against it. Trying to be quick; By the way, it’s not just that, you cite a good example, a marquee example, one that’s been very public. There are dozens of these taking place and I promise you the Chinese Communist Party is not subsidizing American companies that are acting in America’s interest inside of China, that benefit the United States of America.

Moolenaar: Thank you. Secretary Panetta?

Panetta: Look, I think we have to, obviously, be innovative in the way we use economic assistance, but we also have to be careful in the way we do it. And I think if we are going to provide funds, we better make damn sure they’re not being used for purposes that undermine our national security.

Moolenaar: Thank you both very much, I yield back.