Michigan GOP Efforts To Limit State Funds For China-Linked Firms Blocked By Democrats

Amendments proposed by Republican lawmakers in Michigan to restrict the use of state funds for subsidizing companies with ties to China were shot down by Democrats in both the House and Senate. The amendments aimed to expand the vetting process for corporations seeking state incentives and prohibit the allocation of funds to entities originating from adversarial countries like China.

The House amendment, sponsored by Rep. Jay DeBoyer, would have required a review from the Committee on Foreign Investment in the United States (CFIUS) and other prerequisites before officials could approve a Strategic Outreach and Attraction Reserve project for entities and individuals linked to nations of concern. However, Michigan’s House procedures allowed Democratic leadership to gavel down the proposed amendment without a roll call vote.

The Senate amendment, which was more broad, was killed by Democrats in a unanimous vote. Republican state Sen. Jonathan Lindsey, who backed the Senate amendment, accused Democrats of being “so married to this idea of taking Michigan taxpayer dollars and giving them to these corporations with ties to China, they refuse to budge.”

The presence of China-tied corporations receiving state subsidies has become a salient issue in Michigan’s local politics. Companies like Gotion and Ford’s licensing deal with Chinese battery manufacturer CATL have drawn scrutiny for their links to China and the Chinese Communist Party (CCP).

Joseph Cella, a former U.S. ambassador who leads the Michigan-China Economic and Security Review Group (MCESRG), advised lawmakers to support the amendments, emphasizing the need for Michigan to de-risk and de-couple from PRC-based and CCP-tied entities.

The failure of these amendments underscores the ongoing debate over the risks associated with providing state incentives to companies with ties to China. As concerns about national security and economic independence grow, the issue is likely to remain a point of contention in Michigan politics, with Republicans accusing Democrats of prioritizing foreign corporate handouts over the interests of Michigan citizens.