U.S Factories Linked to China's Military Industrial Complex Raise National Security Concerns

By Thea Felicity

Mar 18, 2024 03:03 PM EDT

US Acting Chief of Protocol Ethan Rosenzweig greets Paul Chan Mo-po, Financial Secretary of Hong Kong, as he arrives at a reception for leaders attending the Asia-Pacific Economic Cooperation (APEC) Leaders' Week at the Exploratorium, in San Francisco, California, on November 15, 2023. The APEC Summit takes place through November 17.
(Photo : Photo by ANDREW CABALLERO-REYNOLDS/AFP via Getty Images)

Capchem Technology USA, a company owned entirely by Shenzhen Capchem Technology in China, plans to build large facilities in Ohio and Louisiana to produce chemicals used in batteries.

However, with reports suggesting that it has connections to China's military-industrial complex, the United States raises concerns about its impact on national security and the level of control China may gain over important American industries.

Capchem Technology USA Supplying China's Military Industrial Complex?

A recent Daily Caller News Foundation investigation revealed that Capchem Technology has longstanding connections to China's military-industrial complex. Documents obtained by the investigation indicate that the company was selected over a decade ago to conduct aerospace research for China's military under a program supervised by a blacklisted Chinese government agency. 

Corporate reports suggest that Capchem has received substantial payments from China's Ministry of Industry and Information Technology, a government entity spearheading China's "Military-Civil Fusion" efforts.

Capchem denied supplying China's military-industrial complex. However, the company's products have been touted for military applications in previous annual reports and online platforms. 

Statements made by company officials in the past have also emphasized the military utility of their products. Although Capchem swiftly removed references to military use from its website following inquiries from investigative reporters, such references were still found on its Chinese-language website.

READ NEXT: JPMorgan Chase Is Ready to Leave China if Ordered by US Government, Bank CEO Jamie Dimon Says

Capchem Technology's Link to China's Military Industrial Complex Raises National Security

The decision by Capchem Technology to expand its operations in the US comes amidst growing concerns about the security risks posed by Chinese investment in critical American industries. 

Just earlier this week, VCPost broke the news on the US House's decision to ban TikTok or have its Chinese parent company sell it to an American company over national security concerns.

Besides that, state and federal authorities, such as Missouri Governor Mike Parson, have already laid out an executive order banning Chinese entities from purchasing land near military facilities. Meanwhile, lawmakers like Ohio Representative Brad Wenstrup have urged caution and thorough vetting of companies with ties to China seeking to establish a presence in the US.

READ MORE: US, China Risk a 'New Cold War' as Economic and Trade Conflicts Escalate, IMF Official Warns

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