Washington Tells Ford (F) its Chinese Partnerships are a National Security Problem

On September 9, 2026, the U.S. Department of Transportation warned Ford Motor Company (NYSE:F) that its business relationships with Chinese companies CATL, Geely, and BYD pose a significant national security concern. The department expressed particular alarm at Ford's collaboration with CATL for battery technology in its Michigan plant, its joint venture with Geely, and its decision to delay production of the Lincoln Nautilus from China until 2030.

Ford defended its partnerships, stating that it operates the Michigan plant and employs its workforce, unlike firms that merely import Chinese batteries. The firm noted that its CATL partnership strengthens U.S. battery manufacturing, potentially reducing dependence on Chinese imports. Ford's financial health has improved recently, with adjusted EBIT guidance rising to $10 billion-$11 billion for the year, driven by strong Bronco sales and a better product mix.

With more financial flexibility, Ford may have more resources to manage pressure from policymakers who seek to restrict Chinese technology. Despite these positive signs, the political risk remains high due to CATL's alleged ties to China's military, an issue previously criticized by the Trump administration. If U.S. policy tightens further, Ford's existing U.S. factories could help it adapt faster than firms relying more heavily on Chinese components.

However, upcoming legislation could impose additional costs, delays, or required replacements that could strain Ford's plans to maintain cost and margin stability in the face of growing U.S.-China tensions.