According to reports by Bloomberg and Fox News on September 9, the Trump administration pressured American automaker Ford on Tuesday. It accused Ford of relying too heavily on Chinese companies and warned CEO Jim Farley that Ford's business ties with China posed a 'threat' to the United States' national security and manufacturing industry.
In a letter to Farley, U.S. Transportation Secretary Shawn Ford questioned the strategic direction of Ford's cooperation with major Chinese automotive industry players. He criticized Ford for its increasing reliance on Chinese technology and partnerships, stating that this strategy has raised concerns regarding national and economic security. In particular, he pointed out that it could undermine the integrity of the U.S. automotive manufacturing industry, pose supply chain risks, and lead to dependence on foreign technologies.
In the letter, Duffy specifically mentioned the connections between Ford and Chinese companies such as battery supplier CATL, as well as the framework proposed by Farley earlier this year at the Detroit Auto Show, which was to promote Chinese joint ventures in the United States.
He stated that the U.S. Department of Transportation is still “deeply shocked” by Ford’s use of technologies produced by CATL to manufacture batteries at its Michigan plant. Additionally, Ford’s recent joint venture with Geely in Spain “helped strategic competitors gain a key foothold in Western markets.” The company has also discussed hybrid automotive components with BYD. Duffy believes that these measures have increased Ford’s dependence on the Chinese supply chain and helped strategic competitors expand their influence in the global automotive industry.
He said, “Although the Department of Transportation recognizes the fierce competition in the global market, the company’s recent strategic decisions paint an alarming picture: a well-established American brand is actively tying its future with Chinese companies.”
"When a company deliberately chooses to deepen its operational dependence on strategic competitors, it is unable to become a reliable partner for the American public and the Department of Transportation. Da Fei urged Falli to "reflect upon the aforementioned concerns and national needs, and adopt reasonable strategies prioritizing American workers, utilizing allied supply chains, and promoting domestic automotive industry self-sufficiency and wholeness."
After this letter was made public, Ford's stock price fell significantly on Tuesday in the New York market, by as much as 5.1%. According to CNBC, Ford strongly denied Duff's accusations, calling the letter 'a misguided attempt to gain attention at the expense of a company that contributes the most to American manufacturing.'
Ford also stated that the number of hourly workers it employs in the United States exceeds that of any other automaker. It pointed out that there are “fact errors” in the documents, such as Duffy’s comments about Farley proposing a joint venture framework for Chinese automakers to enter the United States.
Ford urged Duffey to have more open communication with the company, stating that it supports the Trump administration’s vision for promoting American innovation and manufacturing. “If Secretary Duffey contacts us before releasing a letter to the media, we would be happy to share more details about Ford’s commitments to America.”
According to Fox News, this letter marks one of the most forceful public accusations made by the Trump administration regarding business relations with Chinese companies, and it is also the latest example in a series of controversial discussions between the U.S. automotive industry and the Trump administration. Currently, the U.S. automotive industry is increasing pressure on the government to impose a permanent ban on Chinese joint ventures in the automotive industry.
Last week, the "Automotive Innovation Alliance," representing the majority of automotive companies selling cars in the United States, sent a letter to the leaders of both parties in Congress on September 3. They requested that by January 3, 2027, before the current Congress adjourns, legislation be enacted to permanently ban the sale, import, and production of Chinese connected vehicles and their software and hardware in the United States. The reason cited was still the so-called "national security" and data risks.
Currently, the United States has imposed high tariffs on Chinese-made vehicles. The U.S. Department of Commerce has also imposed restrictions on connected systems from “foreign competitors.” As a result, Chinese brands are largely unable to enter the U.S. market. However, car manufacturers remain dissatisfied, fearing that tariffs and regulatory rules may be changed by the next government. Legislative bans are even more difficult to reverse. If administrative restrictions are relaxed, Chinese vehicles, which are cheaper and more intelligent, will pose a threat to their domestic markets and high-profit segments of the market.
Regarding the US measures to suppress Chinese cars, the Chinese Ministry of Foreign Affairs previously stated that the US practice of politicizing economic and trade issues will only hinder the development of the US automotive industry. It urged the US to respect the laws of a market economy and the principle of fair competition, stop generalizing concepts of national security, cease discrimination against and suppression of Chinese enterprises, and effectively maintain an open, fair, and non-discriminatory business environment.
