Republican Lawmakers Target Chinese Battery Giant CATL Over National Security Fears
AInvestThursday, Aug 29, 2024 11:00 pm ET
1min read
On August 28, Republican members of the U.S. Congress, Marco Rubio and John Moolenaar, urged the Department of Defense to place the Chinese battery manufacturer CATL (Contemporary Amperex Technology Co. Limited) on the "military-related" restriction list, citing concerns that its products might pose a threat to U.S. national security.

The lawmakers expressed that reliance on CATL means dependence on the Chinese government, which they argue constitutes a significant risk to national security.

In response, CATL countered these allegations on August 29, asserting that the accusations are "groundless." The company stressed that its battery products pose no greater threat to national security than a brick. According to CATL's statement, their batteries have been crucial in assisting millions of American households and small businesses during natural disasters, extreme weather conditions, and power outages induced by grid instability.

CATL further clarified that the battery products sold in the U.S. market are "passive" and do not contain any hardware or software that would permit remote access or control. Additionally, the company emphasized that it does not engage in any activities related to the military.

This dispute highlights the growing tension between U.S. lawmakers and Chinese companies amid broader concerns about technological and supply chain dependencies. As geopolitical factors continue to influence trade and security policies, companies like CATL find themselves at the intersection of global commerce and national security priorities.

The controversy comes at a time when the U.S. is increasingly scrutinizing Chinese investments and technological advancements. The outcome of this legislative request remains uncertain, but CATL's firm rebuttal underscores the complexities involved in international trade relations, as well as the strategic importance of technological autonomy.
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