US special agents raid Chinese company Fuyao Glass for “financial crimes and labor abuses”

One observer in China warned that the raids could become a “talking point” in the US presidential election campaign.

The investigation comes as US politicians continue to plan containment measures against China ahead of the presidential election in November. It also coincided with Beijing’s announcement that a Chinese business delegation would visit the United States starting Saturday “to strengthen economic and trade cooperation.”

Department of Homeland Security officials said activities related to the investigation were taking place in Dayton, Liberty Township, Miamisburg, Moraine and West Carrollton.

The local newspaper Dayton Daily News quoted a special agent from the Department of Homeland Security as saying that the investigation focused on money laundering, possible human smuggling, labor exploitation and financial crimes.

“Law enforcement is working diligently to identify victims, provide them with assistance and collect evidence relevant to the investigation,” the agent said.

The Fuyao Group confirmed on Sunday that Fuyao Glass America – its wholly owned subsidiary in Ohio – was raided by U.S. federal authorities and assisting local law enforcement officials at around 10 a.m. local time on Friday. The U.S. officials completed their on-site investigation and left around 5 p.m., it said.

Fuyao Glass America is “not the target of the investigation,” the company said, citing US authorities, and is cooperating primarily in the ongoing investigations against a third-party employment agency.

Amy Lei, vice president of Fuyao Glass America, said federal agents and local police officers visited the company as part of an investigation “that we believe involves certain (Fuyao) contractors.”

“The company intends to fully cooperate with the investigation. As a result, parts of our first and second shifts have been suspended. (Fuyao) has resumed production on the third shift and we expect our production and delivery to be unaffected,” Lei said in a statement to local media.

A recording from the Fuyao plant posted on Facebook shows a Department of Homeland Security agent telling workers that the company is not currently under investigation and that there are no plans to arrest anyone at the plant on Friday.

According to local media reports, several residents reported sightings of suspected illegal workers in the neighborhood. The Dayton Daily News reported it received a tip earlier this month raising questions that a recruitment firm may be illegally providing labor to Fuyao.

A professor of international relations at Tsinghua University said it was too early to comment on the impact of the Fuyao raids as there was “no official conclusion from U.S. law enforcement yet.”

“According to media reports, the main issue seems to be the illegal workers. As an auto glass manufacturer, Fuyao is far less sensitive than other industries such as chip manufacturing. But the timing of the raid is sensitive as it could become a talking point in the run-up to the US presidential election,” he said, requesting anonymity due to the sensitivity of the matter.

02:11

In his first speech after the assassination, Trump announces high tariffs on cars made in China

In his first speech after the assassination, Trump announces high tariffs on cars made in China

Ohio State Senator Niraj Antani released a statement on X saying he was “deeply concerned” about Friday’s police action in Fuyao.

“Before I was elected, the State of Ohio provided millions of dollars in incentives to Fuyao through JobsOhio, knowing that American jobs would be created. I look forward to learning more about that today,” he said.

Fuyao became a much-watched symbol of Chinese investment in the US in the wake of the Sino-American trade war in 2019, after the Netflix documentary American factory revealed the lives of US workers at the Fuyao plant in Ohio and aroused great interest in both countries.

The film, supported by the production company of former U.S. President Barack Obama and his wife Michelle Obama, documents how the Chinese auto glass company not only brought new jobs to Ohio, but also the high expectations and tough management style common in factories across China.

On Saturday, Xie Feng, China’s ambassador to the United States, said China’s development and Sino-US cooperation have brought “a sustained growth spurt to the US economy” and also created a huge market for US companies and high-quality and low-cost goods for the American people.

At a seminar in San Francisco to mark the 45th anniversary of bilateral relations, Xie said more than 70,000 U.S. companies had benefited from China’s growth and exports to China alone had created 930,000 jobs in the United States.

“The two sides should complement each other rather than harm each other. They should try to lengthen the cooperation list and shorten the ‘negative list’ and use the success story of dialogue and cooperation to counter the zero-sum game narrative,” he said.