Transportation Secretary Sean Duffy urged Ford Motor to cut business ties with Chinese firms, citing profound concern over technology licensing with CATL and manufacturing partnerships, drawing swift praise from congressional Republicans and a defense from the White House amid broader tensions.
Duffy Calls Out Ford Over Chinese Tech Partnerships
Sean Duffy Sends Letter to Jim Farley Over CATL and Geely
Federal scrutiny on the Marshall, Michigan facility has intensified. Transportation Secretary Sean Duffy sent a letter to Ford Motor Co. CEO Jim Farley on Tuesday, pressing the automaker to sever ties with major Chinese companies after saying that the automaker’s dealings with Chinese battery maker CATL and automakers Geely and BYD raised profound concern.
The transportation department expressed alarm regarding Ford’s reliance on licensed technology from batterymaker CATL at its plant in south-central Michigan. Duffy noted that CATL appears on the Pentagon’s list of companies accused of ties to China’s military.
The administrative warning did not stop at battery components. Duffy criticized the company’s timeline for vehicle imports, specifically pointing to Ford’s decision not to move production of the Lincoln Nautilus from China to the United States until 2030, leaving the company reliant on Chinese manufacturing for several more years.
Capitol Hill Lawmakers Rally Behind Federal Warning
Rick Scott and John Moolenaar Criticize Ford Business Ties to China
Republicans in Congress on Wednesday joined criticism of Ford Motor Co. over its business ties to Chinese firms. Senator Rick Scott of Florida praised Duffy for sounding the alarm about risky corporate entanglements.
“sounding the alarm about Ford’s risky ties to (Chinese Communist Party) companies.”
Rick Scott, U.S. Senator, via Reuters
Concurrently, the House Select Committee on China posted on X comments from the company and media reports about Ford’s business dealings with Chinese firms under the title: This is what Ford says vs. what it does.
Representative John Moolenaar of Caledonia, the China committee chair, added his voice to the chorus. Moolenaar praised Duffy for calling out Ford's growing reliance on Chinese companies, including CATL and Geely,
adding that Ford should work with our nation's allies, not our adversaries.
Corporate Defense and White House Backing
Ford Dismisses Federal Communication and Defends Domestic Footprint
Ford pushed back against the pressure. In a statement Tuesday, the automaker dismissed the federal communication.
“letter is a wrongheaded attempt to capture headlines.”
Ford Motor Co., via Reuters
The automaker defended its domestic footprint by contrasting its capital deployment with industry practices, noting that while others continue to import Chinese batteries, Ford is investing to build batteries here in America.
“Ford owns the plant, controls the operation and employs the workforce.”
Ford Motor Co., via Reuters
The company also found unexpected support within the executive branch. The White House posted on X: Ford is a GREAT American company and has done a tremendous job on increasing investments domestically and shoring production back to the U.S.
International Diplomacy and Legislative Bans
Donald Trump and Xi Jinping Meeting Ahead of U.S. Vehicle Ban
The diplomatic friction arrives during a sensitive diplomatic window. President Donald Trump is set to meet with Chinese President Xi Jinping later this month. Duffy’s comments come as Congress is pushing to tighten a ban on Chinese vehicles in the United States, and Duffy’s letter is the latest warning shot across China’s bow ahead of the Xi-Trump meeting. On Tuesday, U.S. officials accused Chinese AI companies of aggressive, industrial-scale distillation activities.
Meanwhile, the Chinese embassy in Washington responded to Duffy’s letter defending commercial exchanges.
“Normal business cooperation between Chinese and American enterprises should not be politicized. We urge the U.S. side to respect the laws of the market economy and the principle of fair competition.”
Chinese Embassy in Washington, via Reuters
Market reaction reflected the heightened regulatory uncertainty. Ford shares closed down 4% in midday trading to $13.45, while major automakers last week urged Congress to pass the ban before the end of the year.
