Ford and Xiaomi Deny Reported Talks on U.S. EV Production Amid Rising Trade Tensions

Rumors of a potential partnership between Ford and Xiaomi to manufacture the Chinese company's electric vehicles on American soil have been firmly shut down by both companies, following a report by the Financial Times. The denied talks highlight the complex geopolitical landscape shaping the global EV race.

The reported discussions, which sources suggested were exploratory, would have represented a strategic workaround for Xiaomi. The Biden administration's 100% tariff on Chinese vehicle imports, a policy reinforced by additional duties under the Trump campaign's proposals, has effectively walled off the U.S. market. Producing vehicles domestically through a joint venture with a legacy automaker like Ford could have allowed Xiaomi to bypass these barriers and establish a critical foothold.

Analysts note the irony in the speculation, given Ford CEO Jim Farley's public admiration for—and warning about—Chinese EV technology. Farley has previously labeled Chinese automakers an "existential threat" to Western companies due to their cost and innovation advantages. However, Chinese EV makers, including market leader BYD, are facing their own headwinds with a prolonged domestic sales slump, potentially increasing their appetite for international expansion.

The Financial Times report also noted U.S. security concerns regarding Xiaomi's alleged ties to the Chinese military, a claim the company has contested. Such concerns would add a significant regulatory hurdle to any future cooperation.

Michael Rodriguez, Auto Industry Analyst (Detroit): "This rumor, even if unfounded, signals a potential future playbook. For legacy OEMs, accessing Chinese EV tech and cost structures via partnership might eventually seem more viable than trying to out-compete them alone."

David Chen, Supply Chain Consultant (Shanghai): "The denials are expected. No company will admit to exploring such a politically sensitive avenue right now. But the logic is undeniable: Chinese EV prowess meets American manufacturing and market access."

Senator James P. Kellner (R), via social media: "Absolutely disgraceful if true. Ford would be handing the keys of our industrial base to a CCP-linked company. This is the kind of short-sighted deal that sells out American workers and security for a quick stock bump. Tariffs exist for a reason!"

Priya Mehta, Green Tech Investor (San Francisco): "The fervent denial shows how charged the environment is. Ultimately, accelerating the EV transition may require uncomfortable collaborations. The focus should be on who builds the best, most affordable electric cars, wherever the tech originates."