China is also engaging directly. The country's Vice Commerce Minister sat down with Ford's chief policy officer recently to talk about expanding the relationship. The agenda included growing Ford's footprint in China and jointly developing products for international markets. Both sides walked away with reason to continue the conversation.
Building Blocks Already in Place
Ford is not starting from scratch here. The company is already working with CATL, China's largest battery manufacturer, to support its battery plant in Michigan. Talks are underway with BYD to supply batteries for Ford's hybrid lineup. A separate arrangement with Geely is being explored, potentially involving shared factory space in Europe and technology access on both sides. Farley also raised a structural idea with senior US government officials, a model where Chinese automakers could enter the American market through joint ventures, with American companies holding majority ownership. Both sides would share technology and profits, but control would stay with the US partner. Nothing has been formalized. The discussions were preliminary. But the fact that Ford is thinking at this level shows the company is planning well beyond its current product cycle. The focus areas across all these conversations are consistent EV platforms, battery technology, vehicle software systems, and manufacturing costs. These are the areas where Chinese firms have moved the fastest and built the deepest advantages.
Competitive Gaps, Closing Fast
Farley has been unusually direct about what losing this race would mean. He has stated that if Ford cannot compete with China, the company does not have a future. For a CEO of a 120-year-old American automaker to say that publicly, the pressure must be real. Chinese manufacturers have cut development timelines, built supply chains that run from raw materials to finished vehicles, and priced their products in ways that are hard to match without external help. Ford is not the only Western automaker feeling this. Volkswagen, Toyota, Hyundai, and Stellantis are all working through their own partnerships with Chinese firms. This is no longer an exception; it is becoming standard practice across the industry.