GOP candidate for swing House district once defended Chinese company in lawsuit

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A lawyer and Republican candidate for a U.S. House seat in the swing state of Michigan has in the past defended a Chinese-owned firm linked to multiple espionage investigations.

Michigan-based attorney Paul Hudson, who is running in the GOP primary for Michigan’s 3rd Congressional District, served as one of the attorneys defending Yubei (Xinxiang) Power Steering Sys. Co., in a 2015 lawsuit filed by Global Technology Inc., a Michigan company.

Yubei (Xinxiang) Power Steering is a subsidiary of the Aviation Industry Corporation of China (AVIC), a defense contractor owned by the Chinese Communist Party that has faced multiple espionage investigations, including accusations the firm stole secret F-35 information to incorporate into Chinese aircraft.

A 2014 Fox News report on the incident noted that the alleged espionage took place in 2007, with a secretive Chinese military unit passing F-35 technology data to the AVIC that later turned up in China’s new J-20 stealth fighter jet.

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Teachers and students sing together to celebrate the founding day of the Communist Party of China at Wenhua Road Primary School in Zaozhuang, China. (CFOTO/Future Publishing via Getty Images)

The Chinese firm's involvement in the espionage case was one of several cases of Chinese companies spying in the U.S., eventually leading to President Trump signing a 2020 executive order that prohibited American companies from owning shares in companies the Defense Department listed as being linked to the People’s Liberation Army, including AVIC.

Reached for comment by Fox News Digital, a spokesperson for Hudson’s campaign argued the candidate "has represented a wide variety of clients in hundreds of cases in his 18 years of practicing law in Michigan."

"In this decade-old case, Paul assisted a firm client in a limited appeal involving a contract dispute," the spokesperson added. "The only issue at hand was a narrow jurisdictional issue in which the Sixth Circuit unanimously agreed with his client’s position, and the case was quickly dismissed."

But the issue could play an outsized role for voters in Michigan, especially in the aftermath of a high-profile dispute between a small Michigan town and a Chinese company last year.

At issue in that case was a lawsuit filed by Gotion Inc., a subsidiary of China-based Gotion High-Tech, against Green Charter Township, Michigan. Voters in Green Charter Township, which is just north of Michigan’s 3rd District, fought back against plans led by Michigan Gov. Gretchen Whitmer for Gotion to build an electric vehicle battery plant near an area military base after the company’s Chinese ties were revealed, leading to the case that generated national headlines.

Michigan Gov. Gretchen Whitmer (AP Photo/Paul Sancya, File)

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The Gotion case was top of mind for Hudson’s GOP primary opponent, Michigan financial adviser Michael Markey, who argued Michigan "cannot afford to elect a congressman who is in the pocket of the Chinese Communist Party."

"This is not just a concern for voters, it is a concern for national security," Markey told Fox News Digital. "His ties to the Chinese Communist Party should be an immediate disqualifier for running for Congress."

Markey argued that Hudson has demonstrated he will put his personal interests ahead of those of voters, noting China’s well-documented attempts to disrupt American interests.

"It is clear that Paul Hudson is a lawyer for sale to the highest bidder, and in this case, the highest bidder is the Chinese Communist Party," Markey said. "Paul chose to defend the Chinese Communist Party to line his pockets at the expense and safety of Michigan and America."

The campaign of the 3rd District incumbent, Rep. Hilary Scholten, D-Mich., did not respond to a Fox News Digital request for comment.

Rep. Hillary Scholten (Kevin Dietsch/Getty Images)

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Meanwhile, the spokesperson for Hudson’s campaign pointed to the candidate’s long history of "opposing Chinese aggression and influence," noting Hudson has been a strong advocate of rebuilding the Pacific Fleet and has supported increased defense spending to counter China, including support for the recent $8 billion aid package to Taiwan.

"Paul also supports the work and leadership of the Michigan congressman in his neighboring district, John Moolenaar, who heads the House Select Committee on the CCP and is doing important work to expose and counter China's influence operations in our homeland," the spokesperson said.

Michigan's congressional primary elections will be held on Tuesday, Aug. 6.