Chinese Military-Industrial Company To Open Plants Inside U.S.

A Chinese military-industrial company, with ties to the CCP, has big plans to open up several factories inside the United States.

Capchem Technology, which is a subsidiary of the China-based Shenzhen Capchem Technology, is planning on opening chemical factories for electric vehicle batteries in both Ohio and Louisiana.

Shenzhen Capchem also handles military-industrial contracts and fulfillment for the Chinese Communist Party. In 2021, the Department of Defense began to track Chinese military-industrial companies operating inside the U.S:

Today, the Department of Defense released an update to the names of “Chinese military companies” operating directly or indirectly in the United States in accordance with the statutory requirement of Section 1260H of the National Defense Authorization Act for Fiscal Year 2021.

Updating the Section 1260H list of “Chinese military companies” is an important continuing effort in highlighting and countering the PRC’s Military-Civil Fusion strategy.

The PRC’s Military-Civil Fusion strategy supports the modernization goals of the People’s Liberation Army (PLA) by ensuring it can acquire advanced technologies and expertise developed by PRC companies, universities, and research programs that appear to be civilian entities.

Section 1260H directs the Department to begin identifying, among other things, Military-Civil Fusion contributors operating directly or indirectly in the United States.

The Department will continue to update the list with additional entities as appropriate.

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The United States Government reserves the right to take additional actions on these entities under authorities other than section 1260H.

Despite this, CCP-linked companies see no problem in operating inside the United States; how effective is the list if this keeps happening? Philip Lenczycki detailed the proposed factories in this lengthy X social post:

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HOWEVER, Capchem's annual reports — and, until recently — its English & Chinese websites, boasted that the firm's products are "widely-used" in high-end military equipment + aerospace industries pic.twitter.com/FILwQKx3yT

— Philip Lenczycki 蔡岳 (@LenczyckiPhilip) March 18, 2024

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Capchem initially denied their products' military uses, denied cooperating w/ China's military & scrubbed its website after being contacted

Capchem later acknowledged they'd removed their website's "military" reference, claiming it was "inadvertently" included pic.twitter.com/fmkCspGw7X

— Philip Lenczycki 蔡岳 (@LenczyckiPhilip) March 18, 2024

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the 2021 US National Defense Authorization Act states those

– "affiliated" w/ Ministry of Industry and Information Technology

OR

– receiving Administration for Science, Technology and Industry for National Defense direction

= a "MILITARY-CIVIL FUSION CONTRIBUTOR" pic.twitter.com/yLxx41Yq56

— Philip Lenczycki 蔡岳 (@LenczyckiPhilip) March 18, 2024

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Still, Capchem initially denied getting "money/subsidies/donations from the Chinese government”

After @DailyCaller flagged the firm’s annual reports they claimed "the last time the company received any Chinese government subsidies besides standard incentives or awards… pic.twitter.com/pHeoE4otrJ

— Philip Lenczycki 蔡岳 (@LenczyckiPhilip) March 18, 2024

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Comms for @RepBradWenstrup — whose Ohio district includes Lawrence County where one Capchem facility will be built — said: local govs, etc + should "fully vet any companies seeking to establish a footprint in their communities" pic.twitter.com/DoNpmrkU5m

— Philip Lenczycki 蔡岳 (@LenczyckiPhilip) March 18, 2024

Daily Caller broke the story:

Corporate reports show the company, as recently as 2023, received payments from China’s Ministry of Industry and Information Technology — a government agency spearheading the Chinese government’s so-called “Military-Civil Fusion” efforts.

“This network of [Chinese Communist Party] military-linked companies proliferating across the United States is a great example of why blind economic engagement with China is a national security threat,” Bryan Burack, senior policy advisor for China and the Indo-Pacific at the Heritage Foundation’s Asian Studies Center, told the DCNF.

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