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Ford has negotiated a partnership with electric vehicle maker Xiaomi that would pave the way for Chinese carmakers to gain a foothold in the US, according to four people familiar with the talks.
While discussions were preliminary, Ford is exploring the possibility of forming a joint venture with Xiaomi to manufacture EVs in the US, according to the people.
Ford has also talked to BYD and other Chinese carmakers about possible collaboration in the US.
Such a deal would be controversial in Washington. John Moolenaar, Republican chairman of the House China Committee, told the FT that Ford would “turn our backs on America and our allies, and it will make our country even more dependent on China”.
Ford said, “This story is completely false. There is no truth in it.”
Xiaomi said: “Reports that Xiaomi is discussing a joint venture with Ford Motor Company are false. Xiaomi does not sell its products and services in the United States and is not in any talks to do so.”
BYD declined to comment.
Ford Chief Executive Jim Farley is a vocal fan of Chinese electric vehicles Xiaomi SU7 imported Model for your personal use. The Chinese conglomerate has its roots in consumer electronics but it surprised the global automotive industry with a spectacular EV debut in 2024.
Farley warned last year that Chinese rivals pose an “existential threat” to Western carmakers and that in China alone they have enough capacity to “put us all out of business.” He has previously said that Chinese companies are “absolutely coming to America”.
Earlier this month, Farley hosted President Donald Trump at the Ford Truck Plant in Dearborn, outside Detroit. During his visit, Trump told business leaders that if Chinese companies “want to come and build a plant and hire you and hire your friends and neighbors, that’s great, I love that”.
Ford has struck a licensing deal with China’s CATL to produce cells in the US using the battery giant’s technology. The Pentagon has named CATL as a company with alleged Chinese military ties, which the group denies. The House China Committee has also repeatedly expressed concerns about the deal.
In 2024, the Biden administration virtually banned Chinese vehicles from the US by imposing a 100 percent tariff on car imports from China. Trump placed these tariffs in addition to Biden-era restrictions on Chinese software and hardware for vehicles with built-in internet connections.
Trump is preparing to take a trip to China in April that could include a trade deal. Some experts believe the president wants to attract Chinese investment to the US, but his more aggressive officials would not welcome the prospect of allowing Chinese carmakers into the US market.
In 2021, during the final weeks of his first term, Trump added Xiaomi to the Pentagon list of companies with alleged ties to the Chinese military. The Biden administration removed it from the list later that year after a lawsuit by Xiaomi, which is headquartered in Beijing.
In December, the Republican chairmen of several congressional panels urged Defense Secretary Pete Hegseth to put Xiaomi back on the list.
Xiaomi has repeatedly denied any military connections. A company spokesperson told the FT: “Xiaomi is also not part of the Chinese government nor is it affiliated with any Chinese military unit.”
A former US official warned that allowing Ford to form a joint venture with Xiaomi would cause a dangerous “domino effect” that would undermine US national security by driving other US carmakers into a ‘forced marriage’ with Beijing as a matter of basic survival.
Moolenaar said: “Joint ventures with Chinese companies often end badly for American companies, and this new deal can only please Xi Jinping.”
BYD and other Chinese carmakers have made rapid inroads into Europe, Southeast Asia and Latin America with affordable offerings of EVs and hybrids, which are increasingly produced locally.
But Trump’s comments in Detroit and signals from another Chinese conglomerate, Geely, that it is preparing to enter the US market within the next three years, have raised fears of Chinese manufacturers coming to the US.
In a recent interview with Autoline Network, Ash Sutcliffe, head of global communications for Geely, which also owns Volvo Cars and Polestar, said: “The big question for us is when and where will we go to the USA.”
Sutcliffe declined to comment further to the FT but said the group would continue to “monitor” potential opportunities in North America.
Ed Kim, president of consultancy AutoPacific, said Ford was particularly vulnerable to the entry of low-cost Chinese EVs in the US because it had already phased out models in key mass-market segments in anticipation of an EV transition that has since stalled.
These include the compact crossover Ford Escape and the mid-size Ford Edge SUV, which have been discontinued. Ford doesn’t have anything to replace them until at least 2027, when it plans to launch a new low-cost EV platform.
