Republican Candidate’s Investment in Nvidia Under Scrutiny Amid China Concerns
Paul Junge, who is contending for a congressional seat in Michigan’s eighth district as a Republican, has financial interests in a company criticized for its dealings with China.
Junge, competing against Democratic state Senator Kristen McDonald Rivet, was shown to be leading by a slim margin of one percentage point in a poll conducted in August.
Financial disclosures from August reveal that Junge holds investments ranging from $15,001 to $50,000 in Nvidia, a prominent American semiconductor chip manufacturer. This marks an increase from March, when his investment was within the range of $1,001 to $15,000.
In 2022, the U.S. government prohibited Nvidia from exporting advanced chips to China due to concerns they could enhance China’s military strength. Nvidia’s response included developing lower-grade chips that skirted these restrictions, allowing them to continue exporting.
Despite these adjustments, U.S. officials remain wary about the potential national security threats posed by these lower-grade chips. Accusations have been made against Nvidia for exploiting a loophole to maintain their business with China. In April, the South China Morning Post reported that Nvidia chips were utilized in the development of hypersonic missiles in China.
A New York Times investigation in August found that Nvidia had sold these so-called lower-grade chips to a company with ties to the Chinese military.
Meanwhile, Junge has criticized McDonald Rivet for allegedly being lenient towards China. In a campaign advertisement, Junge’s team claims that McDonald Rivet “sent nearly $200 million tax dollars to a Chinese company tied to the communist party.”
This claim refers to McDonald Rivet’s vote in the state Senate, which approved the use of public funds for constructing an electric vehicle battery plant near Big Rapids, MI. The facility will be managed by Gotion, a battery producer with a Chinese parent company.
Gotion has declared that neither China nor the Chinese Communist Party has any influence over its operations. Additionally, Gotion’s largest shareholder is a German-based entity.
At Gotion’s request, the U.S. Department of Treasury’s Committee on Foreign Investment in the United States (CFIUS), which evaluates security risks from foreign investments, reviewed the company. CFIUS concluded that Gotion did not pose any national security threat.
The planned plant is anticipated to create over 2,300 jobs.
Efforts to reach a Junge campaign spokesperson for comments on this matter were unsuccessful.
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