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Saturday, August 31, 2024

NDAs with Chinese company in EV deal resurface in Michigan congressional races

 As the November election nears, non-disclosure agreements signed years ago with a Chinese company are resurfacing — and affecting congressional races in Michigan.

Michigan’s 7th district race was the most expensive campaign in America in 2022. In 2024, spending has been slower — but the district is rated a toss-up this cycle, and garnering nationwide interest.

Inside Elections on Friday moved the race from “Lean Democrat” to “Toss-up,” indicating it’s fair game for either Republican Tom Barrett or Democrat Curtis Hertel Jr. in the open seat currently occupied by Democratic Rep. Elissa Slotkin, who is now seeking office in the Senate.

Republican Tom Barrett was previously attacked for not backing the Gotion deal, but now the NDA issue is spelling trouble for his opponent.Getty Images

The unexpected issue animating these tight races right now are non-disclosure agreements signed related to a land development deal with Gotion, a Chinese-owned EV company looking to open a battery plant near Big Rapids, on the west side of the state.

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Locals have been vocal in their opposition to the deal, which has sparked both national security and environmental concerns, as the proposed plant would be situated in close proximity to two military bases and the Great Lakes.

Gotion’s China-based parent company, Gotion High-Tech, has strong ties with the Chinese Communist Party, including having hundreds of its members on their payroll.

The years-long controversy over Gotion’s development dreams was inflamed this week when Republican vice-presidential nominee J.D. Vance spoke at a local farm against the project, which he called “a threat to America’s national security.”

The renewed scrutiny on the deal is spelling bad news for the candidates with NDAs in their closet.

This is not the only scandal hovering over Elissa Slotkin this election cycle.AP

Hertel Jr.’s late father was not only the former Michigan House Speaker, but also an early mentor to Gov. Gretchen Whitmer — Hertel Sr. even gave the gov her first job in politics.

When elected governor, Whitmer returned the favor by hiring Hertel Jr. as a top aide. That’s where he was working when he signed his NDA with Gotion.

Hertel has spent his career in Lansing, but is now wanting for Washington.

His opponent, former state senator Barrett, was in the legislature when his GOP colleagues backed the Gotion deal in large numbers. They also signed NDAs. But Barrett never did, and voted no at every turn.

Barrett was attacked for his unwillingness to partake in corporate welfare deals last cycle, noted his consultant, Jason Cabel Roe. But in 2024, that’s an asset they plan to use — especially when it comes to Gotion.

“These people gave taxpayer money to multinational corporations, and signed non-disclosure agreements to do it,” the GOP consultant told The Post. “Hertel was architect of the largest budget in Michigan history. Under Hertel, Michigan decided to gut education spending to fund corporate welfare.”

Hertel’s campaign did not respond to request for comment.

Lori Brock, whose 150-acre horse farm was the site of the Vance speech, told The Post she was “mortified” to learn, about a year-and-a-half ago, how many politicians had signed NDAs on the deal.

“I was disgusted,” Brock said. “I had no idea people were that dishonest as to sign NDAs to not discuss what’s going in on our own community.”

Rep. Elissa Slotkin (D-MI) meets with fellow Michigan lawmakers and delegates during the final day of the Democratic National Convention at the United Center on August 22, 2024 in Chicago, Illinois.Getty Images

When Democrats signed the agreements, “I don’t think they thought it would be a liability,” Roe explained. “And I would point to Elissa Slotkin.”

“What I find interesting about Slotkin is, she had zero jurisdiction to get involved,” Roe said. “She signed the NDA because she wanted credit for it.”

Slotkin was Barrett’s opponent in the 2022 race, which she won. By the time public opinion turned against the Gotion deal, it was too late to factor into that contest. But this November she’s seeking Michigan’s open U.S. Senate seat, and the impact of her involvement is yet to be seen.

Last August, Fox reported that Slotkin had signed an NDA with Gotion — twice: first in January 2022, then again with an amendment that December.

This directly contradicted a claim from Slotkin’s campaign two months earlier, when they emphasized to Fox in a statement that Slotkin “did not sign an NDA with or related to Gotion, or any Chinese company.”

“Congresswoman Slotkin has never had any contact with Gotion, period — nor did she ever sign an NDA relating to that project,” a campaign spokesman told Fox in August of 2023, doubling down on the denial.

But per Fox’s report, not only did Slotkin sign the agreement, but so did a staffer in her House office: deputy legislative director Austin Girelli, in 2022.

In a statement to The Post, Slotkin’s campaign again denied the Gotion NDA.

“This is a completely false attack from national Republicans,” said Slotkin spokesman Antoine Givens. “As a national security expert, Rep. Slotkin has dedicated her career to protecting the U.S. from foreign threats and in Congress, she has been leading the charge to combat Chinese influence in critical supply chains and the auto industry.”

“Rep. Slotkin never signed any agreement related to the Gotion project or the Chinese government,” Givens continued. “This is a desperate attempt to change the conversation from Mike Rogers’ history of profiting from corporations with ties to China.”

National Republicans responded in kind to Slotkin’s campaign, and the previously undisclosed non-disclosure agreement.

“Elissa Slotkin signed an NDA with a CCP-linked company and has continuously lied about signing it,” said Maggie Abboud, a spokeswoman with the National Republican Senatorial Committee. “It’s disgraceful that Slotkin is so comfortable lying to Michiganders.”

Former Vice President Mike Pence (right, waving) campaigns with Michigan Republican congressional candidate Tom Barrett at a Flip The House rally on November 4, 2022 in Charlotte, Michigan.Getty Images
Noting the widespread nature of the NDAs among Democrats seeking office, Mike Marinella, spokesman for the National Republican Congressional Committee, described Hertel and Slotkin as “extreme.”

“Their reckless policies are a betrayal of Michiganders and a threat to our security,” Marinella told The Post.

This year, Slotkin was found to be exaggerating the size of her farm when speaking to a group of farmers.

The Post reported exclusively that Slotkin avoids property taxes by claiming an agricultural exemption, even though no farming takes place on her land.

https://nypost.com/2024/08/31/us-news/ndas-with-chinese-company-in-ev-deal-resurface-in-michigan-congressional-races/

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