The Michigan-China Economic and Security Review Group (MCESRG) announced that Ford Motor Company's partnerships with Chinese Communist Party-tied entities have led to financial setbacks and national security concerns in Michigan.
The MCESRG said these entanglements are "perilous" for both the state’s economy and U.S. national interests. The group’s statement referenced Ford CEO Jim Farley’s comments to lawmakers defending a deal with Contemporary Amperex Technology Co. Limited (CATL), a Chinese battery manufacturer, and noted that the arrangement was later reduced following losses. According to the group, such partnerships have not produced financial benefits and leave U.S. national security exposed.
Bridge Michigan reported that Ford has scaled back its electric vehicle plans after receiving significant subsidies for battery facilities in Michigan. The company’s BlueOval Battery Park Michigan in Marshall, originally intended for electric vehicle batteries, now focuses on residential batteries following $13 billion in losses on electric vehicles since 2023 and a $19.5 billion writedown. This shift affects job projections and economic commitments in Michigan where automotive investments had increased under prior policies.
According to the Foundation for Defense of Democracies report, the U.S. Department of Defense listed CATL among Chinese military companies operating in the United States as of January 2025, which restricts certain dealings for security reasons. Analyses note that China’s control over battery supply chains creates vulnerabilities for U.S. military and economic stability, while non-market practices by China impact global supplies and pose ongoing risks.
Congressional records show that MCESRG was co-founded in 2023 by Joseph Cella, a former U.S. ambassador, to track threats from People’s Republic of China and Chinese Communist Party activities at the sub-national level in Michigan. The group evaluates economic and security implications of Chinese investments in the state and works with policymakers to develop safeguards.
