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Here is additional background on the matter:

the subject of intense political debate, with military leaders and politicians arguing that U.S.-funded technology should not be transferred to the foreign firm.
http://articles.chicagotribune.com/2012-12-08/business/chi-wanxiang-wins-auction-for-assets-of-battery-maker-a123-20121208_1_wanxiang-a123-chinese-auto-parts-maker

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Wanxiang has been pursuing approval from the Committee on Foreign Investment in the U.S. CFIUS, a multiagency group led by the Treasury Department, reviews mergers and acquisitions for national-security concerns when a takeover may give a foreign owner control of a U.S. company.

A123, based in Waltham, Massachusetts, filed for bankruptcy (AONEQ) in October after the Wanxiang deal was scuttled amid congressional Republicans’ reluctance to allow the sale of the government-funded company to a Chinese company.
http://www.businessweek.com/news/2012-12-08/china-s-wanxiang-wins-a123-auction-for-260-million

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Both Republican and Democrat senators have expressed concern over the planned acquisition by a Chinese firm of the now bankrupt government funded battery maker A123.

the bipartisan group of senators claimed last week that the planned buyout may compromise national security.

The China-based Wanxiang Group Corp, together with Johnson Controls Inc, is actively seeking to acquire the struggling company, which makes lithium ion batteries for electric cars.

A123′s technology is important to the United States as the company supplies products to the military and the country’s electrical grid and that the government must ensure that the sale of A123 must not compromise national security, a letter written by senators to Treasury Secretary Timothy Geithner, Energy Secretary Steven Chu, and some other top cabinet officials, said.

The letter was signed by the influential Republican Rob Portman from Ohio and Democrat Dick Durbin from Illinois, as well as seven others.
http://thedroidguy.com/2012/12/u-s-senators-express-misgivings-about-chinese-firm-plan-to-buy-a123/

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In a letter to Treasury Secretary Timothy Geithner, Energy Secretary Steven Chu and other top cabinet officers, a bipartisan group of eight senators and one senator-elect called on CFIUS to consider any “potentially harmful consequences that could occur as a result” of a sale to Wanxiang.

In October, the House Intelligence Committee released a report on “national security threats posed by Chinese telecommunications companies of Huawei and ZTE.” Employee-owned Huawei Technologies Co. Ltd. is the world’s second-biggest maker of routers, switches and other telecommunications equipment, and ZTE Corp. (HKSE:0763.HK), its smaller rival, ranks fifth. Both Huawei and ZTE are based in Shenzhen, China and are rapidly becoming “dominant global players” in the telecommunications market, the report said. It noted that telecoms are intertwined with computerized controls for electric power grids; banking and finance systems; gas, oil and water systems; and rail and shipping.

The House Intelligence Committee report said that the U.S. government should prevent acquisitions or mergers by Huawei and ZTE, and that government agencies and contractors should cease using equipment made by the companies. “Huawei and ZTE seek to expand in the United States, but as a result of our investigation, we do not have the confidence that these two companies with their ties to the Chinese government can be trusted with infrastructure of such critical importance,” the committee’s chairman, Michigan Republican Mike Rogers, said.
http://www.forbes.com/sites/jackperkowski/2012/12/04/a123-another-test-for-chinas-u-s-expansion-plans/

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Prior to President Obama’s divestment order in the Ralls case, no transaction had been formally vetoed since 1990, when President George H. W. Bush ordered the divestiture of China National Aero-Technology Import and Export Corporation’s interest in Mamco Manufacturing Co.
http://www.lexology.com/library/detail.aspx?g=939b6e31-da33-4db7-beb0-c95143ca5c82
 

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The world needs the cells, especially the EXT formula. It's just too bad a poorly managed company was building them. Hopefully the cells will become mainstream in TMS-less EVs and will help drive the costs of EVs down to allow for wider adoption. Lower the OEM prices of the cells and step up the production quality and they'll do great.
 

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Transfer of technology is never a good thing when it involves the Chinese.

omg this news going to be a tsunami wave for FOX NEWS good lord let the ev world alone ......
Transfer of technology is never a good thing when it involves the Chinese.
 

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There is this:

"Wanxiang's approach for A123 had stirred a political storm and one U.S. politician was quick to warn about A123 and its sensitive, U.S. taxpayer-financed technology falling into the hands of a Chinese company.

"Given the thin line between Wanxiang and the Chinese government, I am concerned about the government of China having access to sensitive technologies being used by our military forces," said a statement from Congressman Bill Huizenga, a Republican from Michigan where A123 has plants.

The sale did not include parts of A123's business that works with the U.S. Defense Department, a source close to the deal said. That portion of the company went to another bidder, which the source did not identify.

The sale must be approved by Delaware Bankruptcy Court judge Kevin Carey at a hearing scheduled for Tuesday.

Opposition to the deal will likely focus on the Committee on Foreign Investment in the United States, which would need to approve the sale to Wanxiang.

U.S. politicians and retired military leaders have already pressed the government panel to reject Wanxiang.

Separately, the U.S. government has also said it must give its consent before its $249 million grant to A123 can be transferred to a new owner. The battery maker can still draw $120 million under various government grants, according to court records.

It was unclear if the grant would be transferred to Wanxiang.

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Also,
http://reliableplant.com/Read/26188/Wanxiang-America-panel-plant

I think they are and want to be a bigger global player and as long as they build the stuff in the country they want to sell it in as well as do engineering work there, I dont see why a chinese company is any worse or different then a french or german company buying stuff.

I think they are committed to building batteries here for this market. I thought I saw something on this but not sure where. I certainly dont have a fondness for some chinese business tactics by a communist run company. I do think that the US should have pumped more money into A123 to help it out.
 

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Unhappily it really doesn't matter. LiFePO4 cells have been knocked off by so many battery plants in China that the A123 brand and patents are moot. A123's early decision to manufacture power tool cells in China backfired.

The EV was held up here enough by vested oil interests to allow our technology leadership to be overtaken off shore. Only much higher fuel costs and/or subsidies will keep the technology at home. US Patents are only paper unless a product sells here.
 

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Item in the news today says that the (AONEQ) public stock value is essentially worthless due to creditors owed more than the auction brought.

What this also says is there is little "big profit" to be made in the Li-Ion battery world and is becoming commodity/mainstream including easy-to-knockoff technology in China where it's made cheaply (inexpensively). AONE's business model failed since they were so top-heavy trying to make shareholder and corporate officers wealty. At least the IPO brought cash to the financiers and the executives gave themselves big bonuses along the way. A bit of bad QA of cells and some financial mis-calculations along the way and here they are.
 

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This was an interesting aspect ... assuming it is all true now and in the reasonable future.

http://www.chicagotribune.com/business/ct-biz-1209-wanxiang-a123--20121209,0,7833100.story

He said the bidding was close but ultimately Johnson Controls, in its offer, said it would be forced to cut jobs at the Livonia, Mich., factory that Massachusetts-based A123 operates. Half of the funding for that plant came from government grants. A123 also has facilities in China and Korea.

Wanxiang said it would not lay off workers, and Ni previously told the Tribune that his company would nurture A123, absorbing losses for five or 10 years if necessary.
 
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