Trump Administration Criticizes Ford's Chinese Partnerships
U.S. Transportation Secretary Sean Duffy has urged Ford to cut ties with Chinese battery and auto firms CATL, Geely, and BYD, citing national security
The Trump administration has publicly criticized Ford Motor Company for its business dealings with Chinese firms. In a letter to CEO Jim Farley, Transportation Secretary Sean Duffy called on the automaker to sever its ties with battery maker CATL and automakers Geely and BYD, labeling the partnerships as "troubling."
According to a Reuters report, Duffy's letter expressed "profound concern" over Ford's reliance on licensed technology from CATL at its battery plant in Marshall, Michigan. The secretary noted that CATL is on a Pentagon list of companies accused of having ties to China's military. Duffy also criticized Ford's timeline for shifting production of the Lincoln Nautilus from China to the United States, which is not scheduled until 2030, leaving the company reliant on Chinese manufacturing for several more years.
Political Reactions and Mixed Messages
The letter prompted immediate political reactions. A Republican-controlled House select committee on China posted on social media, contrasting Ford's past warnings about Chinese competition with its current partnerships, stating, "This is what Ford says vs. What it does." Senator Rick Scott praised Duffy for "sounding the alarm about Ford's risky ties to (Chinese Communist Party) companies." Representative John Moolenaar, who chairs the China committee, commended the secretary "for calling out Ford's growing reliance on Chinese companies, including CATL and Geely."
Contradicting this criticism, the White House publicly called Ford a "great American company" that had invested in U.S. production. Also, Commerce Secretary Howard Lutnick had recently praised some of the very initiatives Duffy criticized.
Ford's Defense and Broader Industry Context
Ford issued a strong rebuttal to the transportation secretary's claims. The company dismissed Duffy's letter as "a wrongheaded attempt to capture headlines." In its statement, Ford argued that "while others continue to import Chinese batteries, Ford is investing to build batteries here in America." The automaker emphasized that it owns the Michigan plant, controls its operations, and employs the American workforce there.
The Reuters report frames the conflicting statements as part of a larger debate within the U.S. Government. While President Trump aims to protect domestic industries from Chinese competition, officials have shown differing opinions on the limits of collaboration with Chinese companies.
This political pressure on Ford occurs alongside broader industry lobbying. Last week, the Alliance for Automotive Innovation, a trade group representing Ford, General Motors, Toyota, Volkswagen, Hyundai, Honda, and Stellantis, urged Congress to pass legislation that would bar Chinese vehicles from the U.S. Market before the end of the year.
The dispute highlights the complex challenges automakers face in balancing global supply chains, technological advancement, and escalating geopolitical tensions.
