Demetri Sevastopulo, US-China correspondent for the Financial Times, said Ford has held preliminary talks with Chinese company Xiaomi about a joint venture to build electric vehicles in the US, a move that could give Chinese automakers greater access to the US market amid ongoing supply chain dependencies.
"Ford has held talks with China's Xiaomi about forming a JV to build electric cars in the US," said Sevastopulo.
The report was initially published in a Financial Times article and shared by Sevastopulo on X, citing four individuals familiar with the discussions between Ford and Xiaomi. Ford, based in Michigan, has previously sought similar collaborations with other Chinese firms as part of its strategy to expand electric vehicle production capacity.
According to the Select Committee on China, current US tariffs of 100 percent on Chinese-built vehicles effectively block direct imports. This has raised concerns about joint ventures that might circumvent these restrictions. The Pentagon has designated Contemporary Amperex Technology Co., Limited (CATL) as a Chinese military company, restricting it from certain US contracts due to alleged connections. Additionally, the House Select Committee on China has questioned Ford's eligibility for 45X tax credits because of its partnership with this foreign entity.
The International Energy Agency reports that China controls over 80 percent of global lithium-ion battery production capacity, with CATL accounting for one-third of the market share. As US automakers like Ford seek partnerships to leverage this dominance, experts warn that such collaborations could increase vulnerabilities within critical supply chains. In 2024, the Commerce Department banned connected vehicles from Chinese manufacturers due to data security risks, impacting potential entries by companies like Xiaomi.
Sevastopulo joined the Financial Times in 2010 and covers US-China relations from Washington. His previous reporting assignments included Tokyo, Hong Kong, Beijing, and Dublin, focusing on Asia-Pacific geopolitics. He is proficient in Chinese and Japanese and has authored articles addressing US export controls and military tensions.
