The Chairman of the House Select Committee on the Chinese Communist Party, Republican Congressman John Moolenaar, expressed concerns on Thursday (July 23) regarding the cooperation plan between Ford and the Chinese car company Geely in Spain. He believes that this move could help the Chinese Communist Party advance its ambitions to dominate the global automotive supply chain and increase Europe’s reliance on China’s supply chain.
Moolenaar stated that Ford is assisting Chinese car companies in expanding their global presence, which contradicts the recent policy direction of reducing dependence on the Chinese supply chain in the United States. While Ford previously requested the U.S. government to take measures to prevent a large influx of Chinese cars into the U.S. market, they are now partnering with a Chinese car company in Europe, effectively aiding China in weakening the European automotive market and posing a threat globally. He emphasized that American companies should prioritize cooperation with allies rather than deepening partnerships with strategic competitors.
In recent years, the U.S. Congress has been monitoring the cooperation between American and Chinese companies in the fields of new energy vehicles, batteries, and key technologies, fearing that such collaborations may accelerate China’s positioning in the global automotive supply chain and undermine the industrial competitiveness of the U.S. and its allies.
On July 23, Ford and Geely announced a partnership to establish a joint venture in Valencia, Spain, with Ford holding a 66% stake and Geely holding a 34% stake. The joint venture is set to begin operations in the first half of 2027 and start production of new vehicles in 2028, including two new energy vehicles under the Geely brand and new models developed through collaboration between the two companies.
Geely’s founder Li Shufu has served as a member of the National People’s Congress and the Chinese People’s Political Consultative Conference. Like many large private enterprises in China, Geely has an internal Communist Party organization and has long benefited from the Chinese authorities’ support for new energy vehicles and high-end manufacturing.
Analysts point out that the rapid expansion of Chinese car companies in recent years has generally been supported by financing, tax incentives, and industrial policies provided by the government, making them important targets for enhanced scrutiny by European and American governments.
In response to criticism regarding the partnership with Geely, Ford explained that the European market is rapidly changing and highly competitive, and their collaboration aims to utilize the idle capacity of their Spanish factory, share costs, maintain local employment, and restrict the sale of relevant vehicles to Europe only, with no plans to introduce them to the U.S. market. Ford’s stock price fell by 2%.
Apart from Geely, Moolenaar has also questioned Ford’s cooperation with the Chinese battery manufacturer CATL.
In January of this year, Ford announced adjustments to its U.S. battery plant plans to incorporate phosphorous iron lithium (LFP) battery technology licensed from CATL. Moolenaar subsequently wrote to Ford’s CEO Jim Farley, seeking clarification on whether the collaboration complies with U.S. tax incentive regulations and if it could increase dependence on Chinese technology.
Ford stated that expanding LFP battery production in the U.S. is an investment in energy security and American workers, as each new factory can create thousands of high-skilled manufacturing jobs and strengthen the local economy. The relevant plans comply with U.S. laws and tax credit provisions.
In recent years, both Republican and Democratic parties in Congress have been closely examining the Chinese new energy industry supply chain, particularly focusing on whether certain Chinese companies are involved in the Xinjiang supply chain, human rights controversies, and connections with the Chinese military.
CATL has been listed by the U.S. Department of Defense as a “Chinese Military Company.” The list warns American businesses and institutions that cooperating with these companies may pose risks, as they are suspected of assisting in China’s military development, threatening U.S. national security.
In June 2024, Moolenaar, together with then-Senator Marco Rubio and several bipartisan legislators, submitted evidence to the U.S. Department of Homeland Security requesting the inclusion of CATL and others in the list of entities specified in the Uyghur Forced Labor Prevention Act (UFLPA).