Ford Explores EV Manufacturing Partnerships with Chinese Tech Giant Xiaomi, Amid Political Headwinds
Ford Motor Company has engaged in exploratory discussions with Chinese consumer electronics powerhouse Xiaomi regarding a potential electric vehicle manufacturing partnership on US soil, according to a report by the Financial Times. The talks, described as preliminary, center on the possibility of establishing a joint venture to produce EVs.
The development signals Ford's continued search for strategic advantages in the fiercely competitive electric vehicle market. Notably, the Detroit-based carmaker has also held conversations with other Chinese manufacturers, including industry leader BYD, about similar cooperative efforts within the United States.
Any such partnership would inevitably face intense scrutiny in Washington, where concerns over technological dependence and national security regarding China run high. Representative John Moolenaar (R-MI), chair of the House Select Committee on the Chinese Communist Party, was quick to condemn the reported talks. "Ford would be turning its back on American and allied partners," Moolenaar stated, adding that it "will make our country further dependent on China." He characterized potential joint ventures with Chinese firms as deals "only Xi Jinping could love."
Ford has firmly denied the report. "This story is completely false. There is no truth to it," a company spokesperson said. Xiaomi did not respond to requests for comment, while BYD declined to comment.
The news comes as Chinese automakers, leveraging significant cost advantages and rapid innovation, expand their global footprint. Xiaomi, a newcomer to the auto sector, made a splash with its 2024 EV launch, intensifying pressure on established Western manufacturers. Ford CEO Jim Farley has previously labeled Chinese carmakers an "existential threat," warning they possess enough capacity to disrupt the global market and are "absolutely coming" to the US.
Ford's existing collaboration with Chinese battery giant CATL—licensing technology for US battery production—has already drawn repeated criticism from the House China committee, highlighting the political sensitivity of US-China automotive ties. US trade policy further complicates the landscape; 100% tariffs on Chinese vehicle imports, established under the Biden administration and maintained by the Trump presidency, effectively block direct imports, making local manufacturing partnerships a more plausible, though contentious, pathway for Chinese automakers into the market.
Industry Voices React
Michael Rodriguez, Auto Industry Analyst at Bernstein Research: "Whether these talks are real or not, they highlight a strategic dilemma for Detroit. To compete on cost and technology in the EV race, accessing Chinese supply chains and expertise is tempting, but the political risk is immense. Ford is walking a tightrope."
Sarah Chen, Managing Partner at Fusion Venture Capital: "This is a logical, albeit bold, exploration. Xiaomi brings formidable software, user interface, and smart ecosystem experience that legacy automakers lack. A partnership could accelerate Ford's digital transformation, but the execution and political navigation would be herculean tasks."
Frank Kowalski, Retired Union Shop Steward (Detroit): "It's an absolute betrayal. After decades of hard work building this industry, now they want to hand the keys over to Beijing? Farley calls China a 'threat' one day and is reportedly in bed with them the next. This is about short-term profits for executives, not American jobs or security. They should be investing here, with our people, not shopping our future in China."
Dr. Evelyn Park, Senior Fellow at the Center for Geoeconomic Studies: "The denial is predictable given the climate. Even exploratory talks are radioactive. This episode underscores how US-China decoupling in critical sectors like autos is messy and incomplete. Companies are caught between market realities and political directives, leading to these opaque, deniable dialogues."