Ford is reportedly seeking a joint venture with Xiaomi, a Chinese company that has connections to the Chinese military. The Financial Times reported that Xiaomi, which manufactures vehicles including the SU7 sedan used by Ford CEO Jim Farley, has researchers who have collaborated with the People’s Liberation Army on machine learning projects and supports talent initiatives at China’s defense universities.
Chairman John Moolenaar of the House Select Committee on the Chinese Communist Party responded to these reports by stating: “When Ford signed a licensing agreement with CATL it decided to do business with a Chinese military company linked to genocide and human rights abuses. Instead of investing in American battery makers, Ford deepened our country’s reliance on China.”
Moolenaar continued: “If it is true that Ford is starting a joint venture with Xiaomi it will be choosing to do business with yet another Chinese military-linked company. It will 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. Ford can promise more jobs in the near-term but China will always offer cheaper workers, and this will be a losing deal for American labor, American suppliers, and our nation’s entire auto industry. Ford should work with American companies and our nation’s allies, not our adversaries.”
The House Select Committee on the Chinese Communist Party analyzes economic and security issues related to competition with China and develops policy recommendations for Congress. The committee addresses concerns such as technology rivalry, supply chain stability, and national security threats by holding hearings and releasing reports. It also proposes legislation aimed at strengthening U.S. competitiveness against China through bipartisan efforts within the House of Representatives (https://chinaselectcommittee.house.gov/).