US transportation secretary Sean Duffy has criticised Ford Motor Company’s commercial relationships with Chinese firms, saying the carmaker’s dependence on Chinese battery and vehicle production raises "profound concern" for national security. In a letter to Ford chief executive Jim Farley, Duffy urged the company to cut ties with several Chinese partners, naming battery giant CATL and carmakers Geely and BYD.
What the US letter says
Duffy’s letter, sent on Tuesday, singled out Ford’s licensed use of technology from CATL at its Marshall, Michigan, battery plant and criticised Ford’s decision not to move production of the Lincoln Nautilus from China to the US until 2030. The transport secretary warned that strengthening operational links with strategic competitors undermines the company’s reliability as a partner for the American public and the department of transportation.
“When a company intentionally chooses to deepen operational dependencies on strategic competitors, it fails to act as the reliable partner the US public and the department of transport require,” Duffy wrote.
Ford pushed back, calling Duffy’s communication a "wrongheaded attempt to capture headlines" and stressed it is investing in US battery manufacturing. The company emphasised that it owns the Marshall plant, controls operations and employs the workforce there.
Why this matters for business
The dispute highlights two intersecting trends reshaping the global auto industry: the strategic importance of battery supply chains for electric vehicles, and intensified geopolitical scrutiny of Chinese firms operating or partnering in advanced manufacturing hubs.
- Battery supply chains: Carmakers are racing to secure EV battery capacity and technology. Reliance on a small number of global suppliers is drawing regulatory attention.
- Trade and national security scrutiny: US lawmakers and regulators are tightening oversight of Chinese investment and technology transfer in sensitive industries.
- Production footprints: Decisions about where to locate vehicle assembly and battery plants affect jobs, local supplier networks and regional industrial policy.
Global reverberations and industry reaction
Congress is already debating tighter restrictions on Chinese vehicles and whether companies such as BYD should receive waivers to sell in the US. Major automakers last week urged lawmakers to finalise a ban before year-end. Duffy’s letter also recalled a January pitch by Farley at the Detroit motor show that sought to facilitate Chinese joint ventures on US soil — a move Duffy said raised questions about strategic alignment.
The Chinese embassy in Washington, CATL, BYD and Geely did not immediately respond to requests for comment, according to the reporting. Ford framed Duffy’s missive as politically motivated and reiterated its US investments in battery production.
Quick reference: Ford’s named partners and concerns
| Partner | Business link cited | Concern raised |
|---|---|---|
| CATL | Licensed technology used at Marshall, Michigan battery plant | Listed by Pentagon on companies accused of links to Chinese military |
| Geely | Partnership criticised by US lawmakers | Strategic dependency and technology transfer worries |
| BYD | Chinese carmaker subject to potential US sales restrictions | Potential exclusion from waivers and tightened market access |
For South African business readers, the episode matters for several reasons. First, it underlines how geopolitical risk is now a direct input into corporate supply‑chain decisions. Firms sourcing components, batteries or intellectual property from China may face higher compliance costs and political scrutiny in major markets. Second, event‑driven shifts — such as a push to onshore battery manufacturing — can redirect investment flows and supplier opportunities, with implications for job creation in countries positioned in the auto value chain.
Finally, the dispute underscores that public policy in large markets can move quickly. Businesses with exposure to US market access or US government procurement should prepare for tighter regulatory attention on foreign partnerships and to explain how they mitigate security and dependency concerns.
Ford’s rebuttal and Duffy’s letter set the stage for further debate as President Trump prepares to meet Chinese President Xi Jinping later this month. With Congress already considering stricter bans on Chinese vehicles, the conversation about where cars and batteries are made is likely to be central to upcoming trade and industrial policy decisions.
WE NEWS does not provide financial advice. The facts reported here are drawn from the cited correspondence and company responses reported in the source material.
