Ford Faces Growing Pressure in Washington Over Business Ties With Chinese Companies

September 10, 2026 | Washington, D.C.

Ford Motor is facing increasing political pressure in Washington as Republican lawmakers and senior government officials raise concerns about the automaker’s business relationships with Chinese companies.

The dispute centers partly on Ford’s use of technology licensed from Chinese battery giant CATL at its battery plant in Marshall, Michigan, as well as the automaker’s other business relationships involving Chinese companies such as Geely.

Transportation Secretary Raises Concerns

Transportation Secretary Sean Duffy sent a letter to Ford CEO Jim Farley this week urging the company to reduce its connections with major Chinese companies.

Duffy said he was particularly concerned about Ford’s reliance on CATL technology at the Michigan battery facility.

CATL has been placed on a Pentagon list of companies alleged to have connections with China’s military. The company has previously disputed such allegations.

Ford Pushes Back

Ford strongly defended its strategy.

The automaker says the Michigan battery factory is owned and controlled by Ford and employs American workers, even though it licenses battery technology from CATL.

Ford argues that gaining access to advanced battery technology is necessary for American automakers to remain competitive as Chinese companies rapidly expand their position in the global electric-vehicle industry.

Republicans Are Sending Mixed Messages

The controversy has produced an unusual situation inside the Trump administration.

While Transportation Secretary Duffy has criticized Ford’s Chinese partnerships, the White House publicly praised Ford this week as a major American company that is increasing domestic investment.

Commerce Secretary Howard Lutnick has also previously praised some Ford decisions involving bringing production back to the United States.

The result is uncertainty over exactly how much cooperation between American and Chinese companies Washington will tolerate.

Ford Says China Is Also Its Biggest Competitive Threat

Ford CEO Jim Farley has repeatedly warned about the rapid growth of China’s auto industry.

At the same time, Ford believes it needs to learn from Chinese advances in batteries, electric vehicles and manufacturing to compete globally.

That creates a difficult balancing act: Ford wants protection from Chinese automakers entering the U.S. market while simultaneously using some Chinese technology to strengthen its own vehicles.

The Fight Could Affect the Future of American Cars

Congress is already considering tighter restrictions on Chinese vehicles in the United States.

The Ford controversy could now become part of the broader debate over whether American manufacturers should be allowed to license Chinese technology while keeping production and jobs inside the United States.

With competition in the global auto industry intensifying, the outcome could influence how Ford and other American automakers build their next generation of vehicles.

Source: Reuters — September 10, 2026.

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