Chinese Firm Gotion is Suing Michigan Town

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A small Michigan town is standing up to the Chinese firm Gotion and now the company is suing Green Charter Township.

Two years ago, Governor Whitmer and other state officials signed a deal with Gotion Inc. worth $2.4 billion to build an electric vehicle component factory.

Green Charter Township was chosen as the building site. The project was supposed to create approximately 2,350 jobs as well as creating a corporate office in Big Rapids.

However, last November the township voiced their opinion. They recalled five members of the townships board because of their support for tax abatement for the new factory.

Two more members would also resign after supporting the project.

Concern over the Chinese government’s influence over the company has created hostile feelings and there has also been scrutiny over how the project was planned.

Also townspeople say that local communities were not consulted before the project was planned.

Now a newly elected board has voted 4-3 to rescind the plan to connect the factory location with the city’s water supply.

Gotion filed a suit asking a judge to allow the plan to go underway and comply with the original plan. The company is suing the township over breach of contract.

To prevent the Township’s sudden recalcitrance from unraveling an endeavor already years and millions of dollars in the making, this Court should order the Township to comply with its obligations under the parties’ agreement by, among other things, reinstating the resolution to approve the connection of the City’s water systems to Gotion’s project,” the complaint filed by the company said.

Gotion said that they have already invested millions in the project and that the water supply is crucial for operation as the site will need 715,000 gallons of water a day.

The company said that it will provide thousands of jobs that include health insurance as well as paying 150% of the region's current wage.

Before filing the suit Gotion sent a letter asking the board to change their decision.

Last month, attorneys for the board asked Gotion to answer a series of questions. This included if Gotion would agree to be reviewed by the Committee on Foreign Investment in the United States (CFIUS), a committee that investigates projects for potential national security risks.

However, Gotion rejected it saying that the committee did not think that project fell under its jurisdiction. However, several members of Congress have also asked for a CFIUS review.