Transportation Secretary Sean Duffy says yes.
Ford CEO Jim Farley says absolutely not, and this week he made that case directly to the Wall Street Journal instead of through a press release.
🎙️ We break down the full exchange on today's Automotive State of the Union episode.
Duffy's letter, made public Tuesday, accused Ford of "actively intertwining its future with Chinese state-backed enterprises." He argued American companies should "out-innovate competitors" rather than rely on them. Farley's response left little room for ambiguity:
"These are basic misunderstandings, mistruths, whatever words you want to use, that could be cleared up in a simple five-minute call."
What Duffy Is Actually Pointing To
Three things anchor his letter:
Ford's Marshall, Michigan battery plant licenses technology from Chinese battery giant CATL
Ford's Spanish plant will build Geely vehicles for Europe, and the two companies plan to co-develop an SUV for overseas markets
Duffy claims Farley proposed a framework earlier this year for U.S. joint ventures with Chinese automakers
Farley Denies the Joint Venture Claim Outright
On the framework, Farley wasn't diplomatic: "N-O, period. Ford does not propose any framework described in the letter." On the battery plant, he pointed out that it's owned and operated by Ford despite the CATL license, and flagged a strange inconsistency in how the administration talks about the same project. The White House has publicly touted the Marshall plant. Commerce Secretary Howard Lutnick has separately praised Ford's domestic investments. Duffy is criticizing the plant Lutnick is praising.
This Kind of Public Fight Is Unusual for a Reason
Being an American automaker doesn't mean playing on an American-only field anymore. Ford has to balance that identity against a genuinely international business, and that tension is exactly what's on display here. We'd rather see this handled in a room or on a call than through dueling public letters. Public back-and-forth like this rarely resolves anything, it just performs a resolution for the cameras while the real conversation still hasn't happened.
Watch Whether the Next Move Comes by Letter or by Phone
Ford isn't a bystander in this industry. About 80% of the vehicles it sells in the U.S. are built domestically, and it remains one of the country's largest employers of hourly auto workers. Consider this today: whatever gets resolved, or doesn't, between Farley and Duffy will shape how much room every automaker has to work with Chinese suppliers and partners without inviting the same kind of letter.
