WASHINGTON--(BUSINESS WIRE)--The Strategic Materials Advisory Council released the following statement regarding Chinese auto parts maker Wanxiang Group Corporation’s successful bid for U.S. battery manufacturer A123 Systems.
“The Council continues to call on the Committee on Foreign Investment in the United States to block the sale of A123 Systems to Wanxiang Group Corporation to protect U.S. economic and national security interests. We live in an era of undeniable globalization; however, granting a Chinese company access to even the commercial segment of A123’s business will ultimately give it access to Department of Defense financed military technology, due to the similarities in intellectual property across all business lines. A123’s technology may serve as the backbone not only for future power grid technologies but also for key military applications of the near future.
It is time for the U.S. Government to recognize China's recurring strategy of buying a critical U.S. industry, promising to maintain American jobs and future availability, and slowly moving the production offshore. Defending Department of Defense-financed intellectual property is one part of preserving and protecting American jobs and national security.”
On November 27, the Council wrote a letter to Secretary of Treasury Timothy Geithner in his role as Chairman of CFIUS urging him to block the sale of A123 to Wanxiang. Over the course of the past several weeks, dozens of Members of Congress have also expressed serious concern over the sale.
About the Council
The Strategic Materials Advisory Council is a coalition of former U.S. Government leaders and industry experts who have significant experience with strategic and critical materials through decades of service in the public and private sector. The Council was formed with the clear objective to promote policy solutions that ensure continued access of both U.S. industry and military to those materials needed to support a robust 21st century economy and military.