Ford boss Jim Farley has expressed his admiration for the brand and the SU7 but both sides deny any cooperation talks.
Chinese technology giant Xiaomi has categorically denied reports suggesting it was in talks with Ford Motor Company about establishing a joint venture to manufacture electric vehicles (EVs) in the United States.
“This report about a joint venture with Ford Motor Company is completely false,” Xiaomi stated on social media. “Xiaomi does not sell its products and services in the United States and is not negotiating with any companies to do so.”
Ford also rejected the Financial Times report outright, with the Detroit-based carmaker saying: “This story is completely false. There is no truth to it.”
Reported discussions with Chinese manufacturers
The Financial Times had reported that Ford held preliminary talks with Xiaomi about a possible manufacturing partnership, citing four people familiar with the discussions. The report also suggested Ford had spoken with BYD and other Chinese manufacturers about potential cooperation in the US market.
Any such partnership would face significant political opposition in Washington. John Moolenaar, Republican chair of the House China committee, told the Financial Times that Ford would “be turning its back on American and allied partners, and it will make our country further dependent on China.”
“Joint ventures with Chinese companies frequently end poorly for American companies, and this new one would be a deal only Xi Jinping could love,” Moolenaar added.
Chinese EV expansion concerns
Xiaomi surprised the global automotive industry with its high-profile EV launch in 2024, adding to mounting pressure from Chinese manufacturers scaling up globally with lower-cost electric and hybrid models. The company’s core business remains consumer electronics.
Ford chief executive Jim Farley has previously issued stark warnings about Chinese competition, describing Chinese carmakers as an “existential threat” to Western groups, whilst at the same time stating that their quality and capability is “humbling” to witness.
He said they had enough capacity in China alone to “put us all out of business” and warned that Chinese companies are “absolutely coming” to the US.
Existing China connections
Ford already maintains a sensitive China-related partnership through its battery strategy, licensing technology from CATL to produce battery cells in the US. The Pentagon has designated CATL as a company with alleged links to the Chinese military, a claim CATL denies. The House China committee has repeatedly criticised this arrangement.
US trade policy has raised significant barriers to direct Chinese automotive imports. In 2024, the Biden administration imposed 100 percent tariffs on car imports from China, effectively shutting the door to Chinese-made vehicles. President Donald Trump has maintained those tariffs alongside Biden-era limits on Chinese software and hardware in internet-connected vehicles.
The denial from both companies highlights the complex dynamics between US and Chinese automotive manufacturers as trade tensions continue to shape global automotive partnerships and supply chains.
