According to the Financial Times, the American automaker sounded out Chinese companies for partnerships to compensate for a technological gap; Washington reacts with concern
The U.S. auto industry was rocked this week by behind-the-scenes revelations involving Asian automakers. According to the British newspaper Financial Times, Ford has held preliminary talks with Chinese giants Xiaomi and BYD. The agenda of the meetings involved a possible strategic partnership for the production of electric vehicles within the United States, in a maneuver that would help Ford fill its technological and cost gap.
Although the negotiations were described as initial, the mere possibility of a joint venture — along the lines of what Ford tried to do with battery maker CATL — generated immediate reaction in Washington (DC).
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Publicly, the response was blunt. Ford called the report “completely false,” denying any plans to bring Chinese brands onto its assembly lines. Xiaomi reinforced the chorus, stating that it has no plans to enter the American market, while BYD has opted for silence. However, the context plays against the negative: Ford CEO Jim Farley himself has already admitted to having imported a Xiaomi SU7 for personal use, publicly praising the rival’s engineering, which he calls an “existential threat”.
Ford’s vulnerability is real. The automaker has discontinued volume models such as the Escape and Edge and faces a product gap until 2027, when its new low-cost electrics should arrive. A partnership with the Chinese would be a tempting shortcut to fill that gap.
The rumor reignited the debate on national security. John Moolenaar, a Republican who chairs the House China committee, warned that such a deal would deepen U.S. dependence on Beijing, creating a “domino effect” in the sector. The picture is complex: While there are 100 percent tariffs on imports from China, President Donald Trump recently signaled that he is open to Chinese factories on U.S. soil as long as they generate local jobs — a loophole that Ford could be trying to exploit.
