The facility will be a super factory of energy batteries, known as Megapack.

The energy storage plant will produce 10,000 Megapack batteries annually, equivalent to about 40 gigawatt hours of energy storage, and will be integrated with Shanghai's existing large electric vehicle factories.

Mike Gallagher, the chairman of the "China Committee," expressed concern about how Tesla CEO Elon Musk will balance U.S.

government support for Tesla with Tesla's business relationship with China.

Gallagher noted that Tesla seems to be dependent on the federal government's tax breaks, and on access to the Chinese market.

Tesla's plans to open the energy storage Gigafactory come amid rising tensions between the United States and China.

The company's revenue in China last year was $18.15 billion, accounting for more than one-fifth of its total revenue.

By 2022, the output of Tesla's Shanghai plant will account for more than half of its global production.

The "China Committee" seeks to convince Americans of the need to compete vigorously with China and "selectively decouple" the US in certain strategic industries and the Chinese economy.

Gallagher met with technology and entertainment companies, including Apple, Alphabet's Google, and Disney, in California to discuss their business dealings in China.

He hinted that he could ask business executives to testify if his investigation into their ties to China was stymied.

Executives from a range of businesses may be apprehensive about testifying.

Gallagher said he was aware that "If they want to do business in China, there are certain questions that no one wants to be asked." The "China Committee" has held two hearings, one on the "existent" Sino-US competition and the other on the issue of Muslim minorities in China's western Xinjiang region.