John Robert Moolenaar, chairman of the House Select Committee on China, said in an article that Ford's potential joint venture with Xiaomi risks US dependence on Chinese electric vehicle (EV) supply chains amid ongoing tariffs and restrictions on foreign entities of concern.
"be turning its back on American and allied partners, and it will make our country further dependent on China," said Robert Moolenaar. "Joint ventures with Chinese companies frequently end poorly for American companies, and this new one would be a deal only Xi Jinping could love."
According to the Financial Times, Ford engaged in preliminary discussions with Xiaomi about a joint venture to produce electric vehicles in the United States. The report cited four individuals familiar with the situation and mentioned ongoing talks with BYD. However, both Ford and Xiaomi denied these claims, with Ford asserting that the story was "completely false" and Xiaomi confirming that no negotiations had taken place. The article also underscored national security issues, referencing Pentagon designations of Chinese firms like CATL, which has a separate battery licensing agreement with Ford in Michigan.
The U.S. Embassy & Consulates in China highlighted China's control over 80 percent of global battery refining capacity and its supply of nearly three-quarters of U.S. lithium-ion battery imports. This dominance poses vulnerabilities for EV supply chains. To mitigate risks, U.S. policy restricts foreign entities of concern from receiving tax credits under sections 30D and 45X. Additionally, the Department of Commerce prohibits imports of connected vehicle systems linked to China due to cyber threats such as data collection and potential infrastructure disruptions.
Fitch Ratings reported that U.S. auto manufacturing in the Midwest faces competition from Chinese EV and battery companies like CATL amid 100 percent tariffs on Chinese imports. Ford's operations in Michigan may be impacted by partnerships such as its licensing deal with CATL for battery technology. Investments exceeding $20 billion have been made in regional battery production in states like Michigan and Ohio, supported by federal credits aimed at countering China's dominance in the supply chain.
Moolenaar represents Michigan's 2nd congressional district in the U.S. House since 2015 and serves on the Appropriations Committee overseeing subcommittees for agriculture, health services, and national security programs. He chairs the House Select Committee on Strategic Competition Between the United States and the Chinese Communist Party (CCP), focusing on addressing CCP economic and security threats.
