Rumors of a potential collaboration between Ford and Chinese EV giant Xiaomi ignited swift denials from both companies, highlighting the intense political and economic pressures surrounding the global electric vehicle market. The speculation, first reported by the Financial Times, suggested that Ford was in discussions with Xiaomi and other Chinese automakers – including BYD – to establish joint EV manufacturing operations within the United States.
The Initial Report and Rapid Rebuttals
The Financial Times article, citing four anonymous sources, claimed Ford had been exploring a joint venture with Xiaomi to build EVs domestically. This followed public praise from Ford CEO Jim Farley for Chinese EV technology, particularly the Xiaomi SU7, which he has reportedly been driving. Both companies were quick to dismiss the claims as false.
“This story is completely false,” Ford stated unequivocally. Xiaomi added that it has “no plans” to collaborate with Ford in the U.S., citing its current lack of operations within the American market.
Why This Matters: Geopolitics and EV Dominance
The rapid denial underscores the sensitivity of any potential partnership between a major U.S. automaker and a Chinese firm. The Biden administration has already implemented policies effectively blocking Chinese EVs due to national security concerns. Any collaboration would likely face fierce opposition from Washington, with some lawmakers, like Republican Representative John Moolenaar, warning against “turning its back on American and allied partners.”
The underlying trend is clear: the U.S. is determined to maintain control over its EV supply chain, fearing dependence on China in a critical industry.
Trump’s Unexpected Position
Even former President Donald Trump has offered a surprising perspective, suggesting he would welcome Chinese companies building factories in the U.S. and employing American workers. This stance contrasts with the broader U.S. policy of restricting Chinese EV imports, but aligns with Trump’s emphasis on domestic job creation.
The Bigger Picture
The failed rumor of this deal raises a critical question: How will the US navigate the rapidly evolving EV landscape? Despite current restrictions, the pressure to secure affordable and advanced EV technology could eventually force concessions. The global race for EV dominance is far from over, and political realities will continue to shape the industry’s trajectory.
Ultimately, the swift denial from both sides highlights the current political and economic obstacles to U.S.-China cooperation in the EV sector. Despite some exceptions in rhetoric, the prevailing sentiment in Washington remains one of caution and protectionism.
