Ford Allegedly Talked With Chinese Automakers About Joining Forces

The Financial Times reported over the weekend that Ford had held talks with Chinese firm, Xiaomi, about forming a joint venture to build electric vehicles in the United States, citing people familiar with the matter.

Ford responded bluntly, with a spokesperson calling the report “completely false” in a post on X. Xiaomi also dismissed the claim, saying it has no plans to enter the American market. “Xiaomi does not sell its products and services in the United States and is not negotiating to do so,” the company said.

The FT report cites four people familiar with the meetings who say the exploratory talks included the possibility of a joint venture, one that would potentially give Xiaomi a manufacturing presence in the United States. If true, that would be a huge step for any Chinese automaker.

The idea itself isn’t entirely far-fetched, given CEO Jim Farley’s unusually candid interest in Chinese EVs. Farley has repeatedly acknowledged that American automakers are playing catch-up in key areas of software, battery development, and cost structure. He even imported a Xiaomi SU7—a performance-oriented electric sedan that has effectively killed the Porsche Taycan's popularity in the People's Republic—for personal use and evaluation.

Many lawmakers and industry leaders see China’s state-backed EV sector as a strategic threat, not just a commercial one, arguing that the long-term future of the U.S. auto industry is at stake.

Then again, when China's industry was still nascent, the Chinese Communist Party required any foreign automaker to create a joint venture partnership with a local brand if they wanted to produce and sell cars in the country. It served to accelerate the knowledge transfer and is partially responsible for China's booming domestic industry.

Does North America need to consider a similar strategy? Manufacturing EVs is not at all like manufacturing conventional automobiles; maybe automakers like Ford and GM could learn a thing or two by partnering with a Chinese EV firm on home soil.

John Moolenaar, the Republican chair of the House China committee, told FT that Ford would “be turning its back on American and allied partners, and it will make our country further dependent on China”.

Moolenaar also raised alarms over Ford’s separate plans to build a $3 billion battery-related data center using technology licensed from CATL, one of China’s largest battery manufacturers.

“Joint ventures with Chinese companies frequently end poorly for American companies, and this new one would be a deal only Xi Jinping could love.” He also called any new partnership a potential vulnerability.

“China has already shown in recent months that it will weaponize the auto supply chain.” But with Ford taking a $19.5 billion writedown due to losses in its EV programs— including killing the F-150 Lightning—the automaker probably has to do something.

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