In a recent investigation by the Daily Caller News Foundation (DCNF), it was revealed that the Chinese manufacturer of chemicals for electric vehicle batteries, slated to construct two factories in the United States, has deep-rooted connections to China’s military industrial complex.
Capchem Technology USA, a subsidiary of China-based Shenzhen Capchem Technology (Capchem), intends to establish factories in Ohio and Louisiana for producing components essential for electric vehicle batteries. Chinese government documents unearthed by the investigation disclose Capchem’s involvement in aerospace research for China’s military industrial complex, dating back over a decade. Moreover, corporate reports indicate that as recently as 2023, Capchem received payments from China’s Ministry of Industry and Information Technology, a key player in the country’s “Military-Civil Fusion” efforts.
Bryan Burack, Senior Policy Advisor for China and the Indo-Pacific at the Heritage Foundation’s Asian Studies Center, emphasized the potential national security threat posed by Chinese military-linked companies expanding in the U.S., warning against blind economic engagement with China.
Capchem, known for manufacturing chemicals for electric vehicle batteries, previously advertised its products’ military applications, though it has since removed references to this from its website following inquiries from the DCNF. However, the investigation found similar references on Capchem’s Chinese-language website.
Capchem’s involvement with China’s military industrial complex traces back to at least 2012 when it was selected by the Guangdong province Ministry of Industry and Information Technology to participate in aerospace research. This project fell under China’s “Military-Civil Fusion” strategy, which aims to modernize the People’s Liberation Army by leveraging advanced technologies developed by civilian entities.
Notably, Capchem’s annual reports indicate substantial payments received from various Chinese government entities, contradicting initial denials from the company regarding government subsidies. The investigation also highlights Capchem’s long-standing advertisement of its products’ dual military-civilian use.
As Capchem expands its U.S. presence with plans for factories in Ohio and Louisiana, concerns about security risks have emerged. Ohio Representative Brad Wenstrup, among others, has cautioned against the potential threats to supply chains, intellectual property, and national security posed by Chinese-owned companies operating in the U.S.
With state and federal officials taking steps to curb Chinese ownership of U.S. land, Capchem’s expansion plans have raised further scrutiny, prompting calls for thorough vetting of companies seeking to establish operations in local communities.
As the investigation sheds light on Capchem’s military ties amidst its U.S. factory plans, questions linger regarding the implications for national security and the need for stringent oversight of foreign investments in critical sectors.
