Ford & Trump Consider Chinese EV Tech Partnership to Boost US Sales

Ford Motor Co. Is exploring a potentially seismic shift in its electric vehicle strategy, reportedly engaging with the Trump administration about forging partnerships with Chinese EV manufacturers to build vehicles in the United States. The discussions, revealed by Bloomberg and Electrek, signal a possible softening of the US stance on Chinese automotive technology and a recognition of the competitive pressures facing American automakers.

The move comes as China dominates the global EV market, registering nearly 3 million battery electric vehicle (BEV) registrations in the fourth quarter of 2025 alone – a 16% year-over-year increase. This surge propelled global EV sales past the 4 million mark for the first time, highlighting China’s central role in the industry’s growth. Ford CEO Jim Farley initiated the conversations with senior Trump administration officials, including US Trade Representative Jamieson Greer, Transportation Secretary Sean Duffy, and EPA Administrator Lee Zeldin, according to sources familiar with the matter.

The proposed framework involves joint ventures between US and Chinese automakers, with the American company retaining a controlling stake. These ventures would facilitate technology sharing and profit-sharing, potentially accelerating the development and deployment of EV technology in the US. While discussions are preliminary and no agreements have been reached, the very fact that Ford is pursuing this avenue underscores the challenges it faces in competing with established Chinese EV players like BYD and Geely.

This potential shift in policy represents a departure from the Trump administration’s previous approach of imposing tariffs and considering bans on Chinese automakers, citing security risks. The change in tone was foreshadowed by former President Trump’s recent comments at the Detroit Economic Club, where he suggested, “Let China come in,” albeit with the stipulation that Chinese companies build plants and hire American workers.

Ford’s interest in Chinese EV technology is not merely about accessing manufacturing capacity. Chinese automakers have made significant strides in battery technology, software development, and advanced driver-assistance systems (ADAS). Partnerships could provide Ford with access to these advancements, helping it to close the gap with competitors and offer more competitive EV models. The company is already planning to utilize licensed Chinese battery technology from Contemporary Amperex Technology Co Limited (CATL) in its new lithium iron phosphate (LFP) battery plant in Michigan, slated to begin production later this year.

However, the proposal is not without opposition. General Motors has reportedly expressed concerns to the Trump administration, warning that allowing Chinese automakers into the US market could erode market share and disrupt the North American supply chain. Transportation Secretary Duffy echoed these concerns, expressing skepticism about the benefits of a partnership with China during an event in Ohio. The security concerns that previously prompted tariffs and potential bans remain a significant hurdle.

The situation is further complicated by Canada’s recent decision to reduce tariffs on Chinese EVs, a move that has sparked debate but also demonstrated a willingness to consider the economic benefits of increased competition. The Canadian move reduced the tariff rate from 100% to 6.1%. Ford’s global sales figures underscore the urgency of the situation. In 2025, BYD surpassed Ford in global vehicle sales, selling over 4.6 million vehicles compared to Ford’s nearly 4.4 million. This marks the first time a Chinese automaker has outsold Ford globally.

Ford’s strategy also includes a focus on its Universal EV (UEV) platform, designed to underpin more affordable EVs, starting with a mid-size pickup truck in 2027 priced around $30,000. However, the company recognizes that partnerships may be crucial to maintaining its competitiveness in overseas markets, where Chinese brands are rapidly gaining ground. Toyota, Hyundai, and Kia have all seen positive results from similar partnerships in China, leveraging local expertise to enhance their offerings and expand their reach.

The outcome of these discussions remains uncertain. A meeting between President Trump and Chinese President Xi Jinping next month could prove pivotal. The decision will likely hinge on a careful balancing act between economic considerations, national security concerns, and the desire to foster innovation in the rapidly evolving EV landscape. The question is whether the US will continue to pursue a protectionist approach or embrace a more collaborative strategy to secure its position in the future of mobility.