Wanxiang Vows to Keep U.S. Ties If it Buys A123

China's Wanxiang Group has assured A123 Systems Inc. that it would keep the battery maker's American factories and 2,400 employees if it were to gain control, The Wall Street Journal reports.

Wanxiang is vying with Milwaukee-based Johnson Controls Inc. and other potential bidders to buy A123's assets in a bankruptcy court-supervised auction on Dec. 6.

The Journal cites a letter from Ni Pin, president of Wanxiang America, to David Vieauthat, CEO of Waltham, Mass.-based A123. Ni also says his company doesn't want to buy A123's government business, which includes sensitive contracts with the U.S. military.

Some of the Washington, D.C., opposition to Wanxiang's bid is based on concern that sensitive technology could fall into the hands of the Chinese company. Wanxiang's deal this summer to buy 80% of A123 collapsed after it failed to win approval from a committee of federal agencies that reviews deals that could affect national security.

Congressional critics of the deal also object to the prospect of A123 which has received $133 million in grants from the Dept. of Energy falling into the hands of a foreign company that might move the company's operations abroad. No mention has been made of Germany's Siemens AG and Japan's NEC Corp., which have said they are interested in buying A123.