Our tax dollars hard at work.

(Reuters) – China’s largest maker of auto parts won an auction for A123 Systems Inc, a bankrupt maker of batteries for electric cars that was funded partly with U.S. government money, A123 confirmed in a statement Sunday.

Wanxiang Group Corp’s bid of $256.6 million topped a joint bid from Johnson Controls Inc of Milwaukee and Japan’s NEC Corp for the maker of lithium-ion batteries.

The sale did not include A123′s Michigan-based government business that works with the U.S. Defense Department, which was instead sold to Navitas Systems for $2.25 million, A123 said.

Wanxiang’s winning bid came only one day after the Canadian government approved a controversial deal allowing China’s state-owned oil company CNOOC to buy energy company Nexen Inc for $15.1 billion.