Ford and Xiaomi Deny Joint Venture Talks Amid CEO's Mixed Signals on Chinese EV Rivals

Ford Motor Co. (NYSE:F) and China's consumer electronics powerhouse Xiaomi have issued formal denials following a report by the Financial Times suggesting the two companies held early-stage talks over a potential electric vehicle joint venture aimed at the U.S. market.

The report, which cited unnamed sources, claimed discussions explored a partnership that could ease the entry of Chinese automakers into the American automotive landscape. Both companies moved swiftly to quash the speculation. "This story is completely false. There is no truth to it," a Ford spokesperson told the FT. Xiaomi echoed the denial, stating it has not engaged in any negotiations with Ford and does not currently sell products or services in the United States.

The denials arrive amidst a politically charged atmosphere in Washington. Rep. John Moolenaar (R-Mich.), chair of the House Select Committee on the Chinese Communist Party, preemptively criticized the notion of such a partnership, warning it would "deepen U.S. dependence" on China for critical automotive technology and supply chains.

Contrasting the official corporate line, Ford CEO Jim Farley has sent mixed signals regarding Chinese automakers. Farley has personally imported a Xiaomi SU7 electric sedan for evaluation, publicly praising its design and technology. Yet, in recent public statements, he has consistently flagged Chinese EVs as the single largest competitive threat to incumbent Western manufacturers, citing their cost advantages and rapid innovation cycles.

The backdrop is further complicated by ongoing scrutiny from U.S. officials. The Pentagon has previously raised concerns over Ford's existing licensing agreement with Chinese battery giant CATL, alleging potential military links—a claim CATL denies. The House China committee has also questioned that deal.

Ford's search for strategic alliances in the EV space is nonetheless active. The automaker is reportedly in discussions with General Motors (NYSE:GM) regarding support for the bankrupt supplier First Brands Group, part of a broader effort to shore up its supply chain. Separately, Ford is exploring a deal to source batteries for some hybrid models from China's BYD.

Farley has previously acknowledged the complex dynamics, praising former President Donald Trump for taking a tough stance on China while arguing that more must be done to counter Beijing's growing dominance in the global auto industry.

Market Voices

Michael Chen, Auto Analyst at Stratton Research: "The denial was expected given the political climate. What's more telling is Farley's actions—importing a competitor's car speaks volumes. Ford is in a classic bind: needing to learn from and potentially collaborate with the very entities it identifies as its primary long-term threat."

Sarah Jenkins, Portfolio Manager at Horizon Capital: "This episode highlights the impossible tension for legacy automakers. They must accelerate electrification to compete, but every potential path—developing in-house, partnering with Chinese tech leaders, or relying on domestic suppliers—carries immense financial, political, or execution risk. The market hates uncertainty, and this story is full of it."

David Miller, Founder of 'American Auto Revival' Advocacy Group: "This is outrageous. Farley admires the very companies whose state-backed advantages are destroying American manufacturing jobs. First CATL, now flirting with Xiaomi? It's a betrayal. Instead of cozying up to Beijing, Ford should be demanding a level playing field and investing every dollar here at home."

Dr. Li Wei, Professor of International Business at Pacific Rim University: "The swift denial underscores that for now, the 'China risk' outweighs the business logic. The technology and cost benefits of a tie-up with a firm like Xiaomi are clear, but the political cost in Washington is currently prohibitive. This calculus may change, but not before the November election."