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US warns Ford over ties with Chinese firms amid tensions

Al Jazeera · 2026-09-08

AI SUMMARY

• What happened: The US Department of Transportation warned Ford Motor Company about its partnerships with Chinese firms, citing potential national security risks amid escalating trade tensions. • Why it matters: The warning highlights concerns over American economic security and the implications of foreign partnerships, particularly in critical sectors, which could affect Ford's reputation and stock performance. • What to watch next: Monitor Ford's response to the Department of Transportation's letter and any changes in its partnerships with Chinese firms, as well as the broader impact on US-China relations and American businesses.

**US Warns Ford Over Ties with Chinese Firms Amid Tensions**

The United States Department of Transportation has expressed serious concerns regarding Ford Motor Company's partnerships with several Chinese firms, citing potential national security risks amid escalating trade tensions between the US and China. In a letter addressed to Ford's CEO, Jim Farley, Transportation Secretary Sean Duffy highlighted the implications of these collaborations for American economic security.

The letter, which became public on September 8, 2026, was sent late the previous week and specifically pointed to Ford's partnership with Contemporary Amperex Technology Co., Limited (CATL), a leading battery manufacturer in China. Duffy noted that the collaboration at Ford's Marshall, Michigan plant, where lithium-iron-phosphate (LFP) battery cells are produced, raises significant concerns. He emphasized that reliance on imported Chinese technical expertise undermines the spirit of US national security and supply chain independence policies.

In addition to CATL, the letter also scrutinized Ford's joint venture with Geely in Spain, suggesting that it could provide strategic adversaries with a foothold in Western markets. Duffy remarked that such partnerships could compromise American interests, stating, “When a company intentionally chooses to deepen operational dependencies on strategic competitors, it fails to act as the reliable partner the American public and this DOT require.”

Furthermore, the Department of Transportation raised alarms about Ford's discussions with BYD, another Chinese firm, regarding hybrid vehicle parts. Duffy warned that these talks could lead to further integration of subsidized foreign technology into Ford's core supply chains, which could pose additional challenges for US economic security.

The letter's release coincided with a significant drop in Ford's stock, which fell by 4.2 percent on the same day. This decline reflects investor concerns regarding the implications of the US government's stance on the company's international partnerships.

Ford had previously announced plans to shift production of the Lincoln Nautilus from China to the US by 2030. However, Secretary Duffy criticized this timeline, arguing that it would leave an "unacceptable, multi-year window of reliance on Chinese manufacturing." He urged Ford to reconsider its strategies in light of the current geopolitical climate, warning that enriching competitors could jeopardize the company's standing as a reliable American partner.

The letter from the Department of Transportation underscores the growing scrutiny that American companies face regarding their ties to Chinese firms, particularly in sectors deemed critical to national security. The ongoing trade tensions between Washington and Beijing have heightened awareness and concern over foreign investments and partnerships that could affect the US economy.

As of now, Ford has not publicly responded to the letter or the concerns raised by the Department of Transportation. The company's future collaborations with Chinese firms may be closely monitored as the situation develops, reflecting the broader implications of US-China relations on American businesses.

Source: Al Jazeera
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