The Trump administration has voiced serious apprehensions about Ford Motor Company's business connections with Chinese firms, raising questions about potential risks to the U.S. automotive industry. In a letter addressed to Ford CEO Jim Farley, Transportation Secretary Sean Duffy expressed worries about Ford’s strategic alignment involving Chinese state-backed companies, citing concerns over national manufacturing integrity, supply chain vulnerabilities, and dependence on foreign adversaries' technologies. The letter referenced Ford’s relationship with Chinese battery supplier CATL and criticized a proposal made earlier this year to enable Chinese joint ventures on U.S. soil.

Ford responded promptly, defending its position as the leading American automaker by production volume and emphasizing its commitment to domestic manufacturing and employment. The automaker labeled the government’s letter as an attempt to gain media attention based on incorrect information. Specifically, Ford disputed claims about Farley advocating for a joint-venture framework that would facilitate Chinese automakers' entry into the U.S. market. The company also stressed its strong U.S. workforce, employing more hourly workers domestically than any other automaker.

The concerns stem from Ford’s existing licensing agreement with Contemporary Amperex Technology Co. (CATL), a major Chinese battery technology provider, which includes production of lithium iron phosphate batteries. This partnership, initially announced in 2023, has gained renewed scrutiny amid ongoing U.S.-China tensions and Ford’s plans to expand use of these batteries for energy storage systems. Secretary Duffy’s letter highlighted the competitive pressures faced globally but warned that Ford’s increasing engagement with Chinese entities could undermine the long-term independence of a storied American brand.

Duffy urged Ford’s leadership to reconsider its strategic direction by adopting policies that prioritize American workers, strengthen ties with allied countries’ supply chains, and uphold the resilience and integrity of the U.S. automotive sector. In response, Ford expressed its willingness to engage in more open communication with the administration, affirming alignment with the Trump administration’s goals to foster innovation and domestic manufacturing growth. The exchange underscores ongoing tensions between the automotive industry and government officials over trade policies and foreign partnerships.