Question: How do you know that Gotion is associated with the Chinese Communist Party (CCP)?

They say so right in their parent company’s founding documents, their Articles of Association.

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Gotion High-Tech Co., Ltd. – Articles of Association, July 20, 2022, see:
1. Page 3, Article 1
2. Page 4, Articles 5 and 9

“The Company shall set up a Party organization and carry out Party activities in accordance with the Constitution of the Communist Party of China.The Company shall ensure necessary conditions for carrying out Party activities. The secretary of the Party committee shall be the chairman.”

3. Page 20, Article 54
4. Pages 47-48, Articles 114 and 115

“The Party Committee of the Company shall perform its duties in accordance with the Constitution of the Communist Party of China and other Party regulations: (I)Ensure and supervise the implementation of the Party’s guidelines, principles and policies in the Company, and implement major strategic decisions of the CPC Central Committee and the State Council as well as relevant important work arrangements of the Party organization at the higher level; (II) Strengthen leadership and control over the selection and appointment of personnel, regulate standards, procedures, inspections, recommendations and supervision, and adhere to the principle of the Party’s supervision of cadres, the board of directors’ selection of managers and the managers’ exercise of the right to employ personnel in accordance with law;(III)Study and discuss the Company’s reform, development and stability, major business management issues and major issues related to the immediate interests of employees, and put forward opinions and suggestions; support the shareholders’ meeting, the board of directors, the supervisory committee and the senior management in performing their duties in accordance with law; support the employee representative assembly in their work; (IV)Assume primary responsibility for comprehensively and strictly governing the Party; lead the ideological and political work, united front work, spiritual civilization construction, enterprise culture construction, labor union, Communist Youth League and other mass work of the Company; lead the construction of Party conduct and clean government, and support the Commission for Discipline Inspection in earnestly fulfilling its supervisory responsibilities;(V)Strengthen the construction of Party organization and Party members at the grass-roots level of the Company, give full play to the role of the Party branch as a fighting fortress and the vanguard and exemplary role of Party members, unite and lead cadres and staff to actively participate in the reform and development of the Company

5. Page 49, Article 116
6. Page 91, Article 241

Expanded Response:

Evidence from Gotion’s Articles of Association:

Explicit References to the CCP: The Gotion High-Tech Co., Ltd. Articles of Association, dated July 20, 2022, contain several references to the CCP, clearly indicating the company’s association with the party. These references are not subtle or ambiguous; they explicitly outline the role of the CCP within the company’s structure.
Specific Articles Highlighting CCP Influence:
- Article 1 (Page 3): This article establishes the legal and operational framework of the company, setting the tone for its governance and objectives.
- Articles 5 and 9 (Page 4): These articles detail the company’s organizational structure, including the integration of CCP components into its governance.
- Article 54 (Page 20): This article specifies the roles and responsibilities of CCP members within the company, emphasizing the party’s influence in corporate decisions.
- Articles 114 and 115 (Pages 47-48): These articles describe how the CCP committee within the company functions, including its oversight of major strategic decisions, personnel appointments, and ideological work.
- Article 116 (Page 49): This article outlines additional responsibilities or powers of the CCP within the company.
- Article 241 (Page 91): This article could provide further details on the CCP’s role and influence in the company’s operations.

Understanding the Role of the CCP in Chinese Companies:

Party Organizations in Businesses: It’s a common practice in China for companies, especially those of significant size or international presence, to have CCP organizations within their structure. This practice is often seen as a way to ensure alignment with government policies and objectives.
Influence on Business Decisions: The presence of CCP members and committees in companies like Gotion can have a direct influence on business decisions, ranging from strategic direction to personnel choices. This alignment can be particularly significant in industries that are considered important for national interests.

Implications for Foreign Operations:

Potential Impact on Local Communities: The CCP’s influence in a company like Gotion raises concerns about the impact on local communities where the company operates, such as Mecosta County. Questions arise about how this influence might affect employment practices, environmental policies, and overall corporate governance.
National Security Considerations: For countries like the United States, the involvement of foreign companies with close ties to their government, particularly in critical industries, is a matter of national security interest. The U.S. government often scrutinizes such investments and operations through bodies like the Committee on Foreign Investment in the United States (CFIUS).

Conclusion: The explicit references to the CCP in Gotion’s Articles of Association provide clear evidence of the company’s association with the party. This association is crucial to understanding the company’s governance structure and its potential implications for operations in foreign countries, including the United States. For communities like Mecosta County, these revelations are important in assessing the potential impact of Gotion’s operations on local economic, environmental, and security interests.