Ford Urged to Reduce China Ties and Increase US Manufacturing

US Transportation Secretary Sean P. Duffy has urged Ford Motor Company to reduce its reliance on Chinese technology and manufacturing, citing national security concerns.

In a letter to Ford CEO Jim Farley dated 8 September, Duffy criticised the company’s continued use of Chinese technology and partnerships, arguing that Ford should increase its focus on manufacturing and technological development in the US.

Kentucky Truck Plant in Louisville is Ford Motor Company’s largest and highest revenue U.S. manufacturing plant

© Ford

The letter highlights Ford’s use of licensed technology from Chinese battery manufacturer Contemporary Amperex Technology Co. Ltd. (CATL) at its BlueOval Battery Park facility in Marshall, Michigan. Duffy said CATL is included on the US Department of War’s list of banned companies.

Duffy also raised concerns about Ford’s partnership with Chinese automotive manufacturer Geely Auto. The companies recently agreed to work together on low- and zero-emission vehicles at Ford’s factory in Valencia, Spain.

The secretary further pointed to Ford’s decision to delay the return of some Lincoln models to US production until 2030. He said this would leave Ford dependent on China for aspects of its vehicle manufacturing for several more years.

He also called on Ford to develop greater technological independence and make use of US-based manufacturing and engineering capabilities.

U.S. Transportation Secretary Sean P. Duffy said:

When a company intentionally chooses to deepen operational dependencies on strategic competitors, it fails to act as the reliable partner the American public and this DOT require. Iconic American companies, like Ford, are also expected to out-innovate competitors. To that end, they need to chart clear paths to technological self-reliance.

The intervention comes as the Trump administration continues to emphasise domestic manufacturing and reducing US dependence on China across strategic industries, including automotive and battery technology.

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Democrats Introduce Bill to Boost U.S. Manufacturing, Reduce Reliance on China

Washington — Senate Democrats have introduced sweeping legislation aimed at rebuilding America’s manufacturing base, reducing reliance on Chinese-dominated supply chains and expanding federal support for industries viewed as critical to U.S. economic and national security.

The Make More in America Act would broaden the mandate of the Export-Import Bank of the United States, known as EXIM, allowing it to finance domestic manufacturing projects in sectors including semiconductors, artificial intelligence, critical minerals, biotechnology, robotics, batteries and shipbuilding.

Senate Democratic Leader Chuck Schumer said the measure is intended to address vulnerabilities exposed by repeated disruptions to global supply chains, which he said have contributed to higher costs for American consumers.

“Americans cannot keep paying the price every time a supply chain crisis hits — whether it’s a pandemic, a war, or the whims of the Chinese Communist Party trying to undermine the American economy,” Schumer said.

“We have to break the cycle of supple chain shocks that are raising prices, invest in American industry, and protect our national security,” he added.

The bill was introduced by Schumer along with Democratic Sens. Jack Reed, Amy Klobuchar, Chris Coons, Brian Schatz, Cory Booker, Elizabeth Warren, Chris Van Hollen, Tammy Duckworth, Mark Kelly, Andy Kim, Lisa Blunt Rochester and Angela Alsobrooks.

Under the legislation, EXIM would be authorized to support the development, commercialization, production and future export of technologies deemed critical to U.S. competitiveness and national security. The bill would create a permanent Make More in America Program focused on expanding manufacturing capacity across the country.

Priority industries would include semiconductors, artificial intelligence, quantum technology, biotechnology, advanced energy systems, critical minerals, drones, robotics and shipbuilding.

“The United States has faced a manufacturing decline under the Trump Administration and we need to reverse that trend,” Reed said.

“We must bolster domestic supply chains, revive America’s manufacturing competitiveness, and get our manufacturing workforce growing again to ensure America is capable of responding to global threats and builds critical technologies here at home.”

Democrats backing the bill cited China’s growing industrial dominance and U.S. dependence on overseas suppliers for strategically important goods. The bill’s findings state that China accounts for a substantially larger share of global manufacturing output than the United States and continues to strengthen its position in advanced technologies.

Booker said the legislation is designed to help American workers compete in the global economy.

“By expanding the Export Import Bank’s core mandate, this legislation strengthens EXIM’s ability to support the industries that are essential to our national security and economic leadership from semiconductors to advanced manufacturing,” Booker said.

The proposal would allow federal support for building or expanding manufacturing facilities in the United States and would require recipients to show benefits for American workers. Projects would need to include commitments related to workforce training and education, while construction work would be subject to prevailing wage requirements.

The legislation also includes safeguards intended to protect taxpayer funds. Assistance could not be used for stock buybacks or repayment of existing debt, and projects that fail to meet agreed deadlines or labor requirements could face clawbacks.

Senior executive branch officials, members of Congress and their immediate family members would also be barred from receiving support under the program. (Source: IANS)

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