The Trump administration on Tuesday expressed "profound concern" to Ford Motor Company over its business relationships with Chinese companies, with Transportation Secretary Sean Duffy sending a letter to CEO Jim Farley citing national security and economic security concerns. The letter, made public on the Department of Transportation's website, said Ford's partnerships with battery maker CATL and automakers Geely and BYD raised alarm about the company's strategic trajectory.
In the letter, Duffy said Ford's "recent strategic decisions paint a troubling picture of a foundational American brand actively intertwining its future with Chinese state-backed enterprises." He specifically cited Ford's use of licensed technology from CATL at its BlueOval Battery Park facility in Marshall, Michigan, where the company produces lithium-iron-phosphate battery cells. Duffy said the DOT was "deeply alarmed" by this arrangement, and noted CATL is on the Pentagon's list of companies accused of ties to China's military.
Duffy further questioned Ford's joint venture with Geely in Spain, saying it "helps strategic adversaries secure a vital foothold in Western markets," and raised concerns about reported talks with BYD over hybrid vehicle components.
"When a company intentionally chooses to deepen operational dependencies on strategic competitors, it fails to act as the reliable partner the American public and this DOT require," Duffy wrote in the letter, urging Ford to reduce its reliance on Chinese technology and chart paths to technological self-reliance.
Ford's response
Ford quickly pushed back, calling the letter "a wrongheaded attempt to capture headlines" and accusing Duffy of "factual errors" that misstated the company's operations. In a statement, Ford said, "Had Secretary Duffy reached out before issuing his letter to the press, we would have been happy to share more details about Ford's US commitment."
The company defended its partnership with CATL, describing it as "a limited technology-licensing and services agreement, not a joint venture or foreign-owned manufacturing operation." Ford said it owns the plant, controls the operation, and employs the workforce, and noted the factory has created 1,700 jobs for American workers producing batteries in Michigan. The company also highlighted its investments, saying "while others continue to import Chinese batteries, Ford is investing to build batteries here in America."
CEO Jim Farley went further in an interview with The Wall Street Journal, calling Duffy's accusations "basic misunderstandings, mistruths, whatever words you want to use." He denied the claim that Ford had proposed a framework to facilitate Chinese joint ventures on US soil, saying "N-O, period. That's flatly wrong." Farley also said that critical details could have been clarified "with a simple five-minute call."
Broader context
The letter comes amid escalating pressure from the Trump administration on American automakers to produce domestically, including through tariffs and other measures. It also lands as President Donald Trump has signaled openness to Chinese automakers building cars in the United States with American workers, while maintaining a ban on imported Chinese vehicles.
Trump said in a Fox News interview that he would not oppose Chinese automakers opening plants in the US, stating, "If China wanted to come in and open a plant to build their cars here, I'd be okay with it — Japan does it — but they hire our people." At the same time, he rejected suggestions that Chinese-made cars would be allowed into the US market, saying, "We don't allow his cars into the United States, and we never did."
The administration's stance has drawn criticism from some lawmakers and the auto industry. Senator Elissa Slotkin, a Michigan Democrat, said there were "rumors that Trump is planning to allow Chinese cars to be sold in the U.S., as part of a larger deal he's putting together. That would be a strategic mistake." Trump dismissed her statement as a "total phony rumor."
The Alliance for Automotive Innovation, representing major automakers including Ford, has urged Congress to pass legislation permanently barring Chinese vehicles from the US market. Its CEO, John Bozzella, said, "Right now, Chinese automakers are dumping subsidized vehicles with connected software and hardware around the world."
Congressional scrutiny
The dispute has also drawn attention in Congress. Republican Senator Rick Scott praised Duffy for "sounding the alarm about Ford's risky ties to [Chinese Communist Party] companies," according to Reuters. The House Select Committee on China also posted company statements alongside reports about Ford's Chinese business relationships under the heading: "This is what Ford says vs. what it does."
In July, Representative John Moolenaar, chair of the House select committee on China, criticized Ford's partnership with Geely, saying it "will further enable China's decimation of auto markets in Europe."
The letter was released hours after Ford Australia announced its first two vehicles imported from China — the Bronco Basecamp hybrid SUV and the Transit City electric van — both produced in a joint venture with Jiangling Motors Corporation in Nanchang, China.
This clash of views comes as Trump is set to meet with Chinese President Xi Jinping later this month, with trade and automotive policy likely to be key topics on the agenda.