Ford Faces U.S. Pressure Over China Ties as National Security Concerns Grow

Ford Motor Co. is facing growing pressure from the Trump administration over its business relationships with Chinese companies, with U.S. Transportation Secretary Sean Duffy warning that the automaker’s Ford China Ties and reliance on Chinese technology and manufacturing could create national security risks.

Duffy raised the concerns in a letter to Ford CEO Jim Farley on September 8, urging the company to reduce its ties with major Chinese firms and place greater emphasis on American manufacturing and technological self-reliance. The letter singled out Ford’s relationships with battery manufacturer Contemporary Amperex Technology Co. Ltd. (CATL), automaker Geely, and other Chinese companies, putting Ford China Ties under increased scrutiny from U.S. officials.

One of the main concerns is Ford’s use of CATL technology at its BlueOval Battery Park in Marshall, Michigan. The facility is part of Ford’s strategy to expand domestic battery production and support its electric vehicle operations. Duffy argued, however, that using technology licensed from a Chinese company creates a strategic dependency that could conflict with Washington’s efforts to limit Chinese influence over critical industries and further complicates Ford China Ties.

The Transportation Department also criticized Ford’s decision to continue producing some Lincoln vehicles in China, including the Lincoln Nautilus, rather than immediately moving production to the United States. The criticism adds to growing concerns surrounding Ford China Ties and the automaker’s broader reliance on Chinese manufacturing.

Ford Defends Its American Investments

Ford has rejected the administration’s characterization of its China relationships, arguing that the company remains deeply committed to U.S. manufacturing, jobs and investment.

The automaker has emphasized that it owns and operates the Michigan battery facility and controls its workforce. Ford has described its arrangement with CATL as a technology-licensing agreement rather than a Chinese-owned joint venture.

Ford CEO Jim Farley also pushed back against what he described as misunderstandings in Duffy’s letter. He maintained that Ford’s partnerships outside the United States do not undermine its domestic operations and invited the transportation secretary to visit the company’s facilities to better understand its investments and production plans.

The disagreement comes as Ford continues to invest in U.S. production while competing in an automotive market increasingly shaped by Chinese advances in electric vehicles, batteries and manufacturing technology.

Ford has argued that access to global technology and partnerships is important for remaining competitive. At the same time, the company has been increasing domestic production and seeking to bring more manufacturing back to the United States.

The situation illustrates the difficult balance facing major American automakers. Companies are being encouraged to strengthen domestic supply chains and reduce exposure to China while also trying to access technologies and partnerships that can lower costs and improve their competitiveness.

China Partnerships Put Global Auto Strategy Under Scrutiny

Ford’s relationship with Chinese companies extends beyond its U.S. battery operations. Its partnership with Geely in Europe has also attracted attention from American officials.

Ford and Geely have agreed to work together at Ford’s Valencia facility in Spain, with plans to manufacture low- and zero-emission vehicles for the European market. Ford is expected to hold a majority stake in the venture, while Geely will retain a minority position. The partnership is intended to improve the competitiveness and utilization of the Spanish plant.

U.S. officials, however, view such arrangements as part of a broader expansion of Chinese influence across the global automotive industry. Republican lawmakers have joined Duffy in questioning whether American companies should deepen relationships with Chinese firms while Washington is simultaneously seeking to restrict Chinese automotive influence in the United States.

The dispute also comes as Congress considers tighter restrictions on Chinese vehicles and technology in the U.S. automotive market. Major automakers have supported efforts to prevent Chinese manufacturers from gaining greater access to American consumers.

For Ford, the controversy highlights a growing conflict between global business strategy and Washington’s national security priorities. As competition between the United States and China increasingly extends into electric vehicles, batteries and advanced manufacturing, partnerships that were once primarily commercial decisions are now receiving closer scrutiny from policymakers.

The pressure on Ford could therefore signal a broader shift in how American companies are expected to approach Chinese technology, manufacturing and investment, particularly in industries considered strategically important to the U.S. economy.

Sources: https://www.foxbusiness.com/economy/duffy-puts-ford-notice-over-china-ties-warns-security-concerns