US warns Ford over ties with Chinese firms amid tensions

What the report says

The US Department of Transportation has pressed Ford Motor Company over its business ties with Chinese firms, citing national security and supply-chain concerns as trade tensions between Washington and Beijing continue. According to Al Jazeera, Transportation Secretary Sean Duffy sent a letter to Ford chief executive Jim Farley that criticized the company’s links with CATL, Geely and BYD. The letter was made public on Tuesday, though it had been sent late last week.

Al Jazeera reported that Duffy singled out Ford’s battery-related work with CATL at a plant in Marshall, Michigan, as well as a joint venture with Geely in Spain and discussions with BYD on hybrid vehicle parts. The department argued that these relationships could increase dependence on Chinese technology and manufacturing. It also said Ford’s plan to shift Lincoln Nautilus production from China to the United States by 2030 would still leave a significant period of reliance on Chinese production.

The article notes that CATL was banned by the US Department of Defense in January 2025, before President Donald Trump took office. Ford has not publicly responded to Al Jazeera’s request for comment. The company’s shares fell more than 4 percent on Tuesday after the letter became public, underscoring how closely the issue is being watched by investors.

More broadly, the episode reflects wider US efforts to reduce reliance on Chinese industrial input in strategic sectors such as electric vehicles and batteries, though the specific regulatory response to Ford remains a developing issue.