Chinese companies are increasingly turning to courts in the United States to challenge Washington's restrictions, with battery maker Gotion High-Tech becoming the latest to seek damages after its multibillion-dollar manufacturing project was derailed by local government.
A US subsidiary of Gotion High-Tech has filed an amended lawsuit in federal court in Michigan seeking millions of dollars in damages from Green Charter Township, accusing local officials of breaching a 2023 development agreement for a planned $2.36 billion electric vehicle battery components plant after withdrawing support for the project.
The case adds to a growing list of legal challenges mounted by Chinese companies against US restrictions and policy measures that they argue unfairly target commercially-focused businesses.
The amended complaint alleges the township abandoned commitments to support the project and secure permits, effectively scuttling an investment that Gotion said took years to develop and required millions of dollars in spending on land acquisition, planning and infrastructure.
The company is also seeking compensation for future lost profits and costs associated with Michigan's demand that it repay more than $23.7 million in grants.
