Washington, D.C. – As part of the Department of Commerce’s ongoing investigation into whether China is manipulating the graphite active anode material (AAM) market in the United States through dumping AAM and excessive government subsidization, it concluded that BTR New Material Group Co., Ltd. is controlled by the Government of China (GOC) and the Chinese Communist Party (CCP). Further, the Department of Energy (DOE) previously concluded that BTR is a Foreign Entity of Concern (FEOC). BTR is a leading global producer of lithium-ion battery materials, including AAM.

A memo released by Commerce states: “…BTR’s management and ownership are affiliated with the GOC and BTR’s export functions are subject to de facto government control.” The memo also highlights that the U.S. Department of Energy (DOE) concluded that BTR is a Foreign Entity of Concern (FEOC) that is either “owned by, controlled by, or subject to the jurisdiction or direction of the GOC.”

It continues: “Thus … BTR is not independent from GOC control because shareholders, board members, and other senior managers are members of the CCP or affiliated with the GOC.”

FEOC frameworks have been implemented by the U.S. government in recent years to prevent China, Iran, North Korea, and Russia from infiltrating U.S. markets and benefitting from federal incentives funded by the U.S. taxpayer.

Commerce also found that China Baoan Group, BTR’s parent company which holds 66.86% of its shares, is controlled by the CCP: “As such, the record indicates that the president, vice president, and executive director and chief operating officer are CCP members and the China Baoan Group maintains a CCP Party Committee similar to that of BTR.”

The final International Trade Commission (ITC) hearing for the case is slated for February 12^th.

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