Ford CEO Jim Farley recently floated a big idea to the Trump administration: let Chinese automakers build vehicles on American soil, but only through joint ventures controlled by U.S. companies. The proposal, discussed at the Detroit Auto Show in January 2026, would flip the playbook that China used on Western automakers for decades and apply it here at home. It’s a surprising move from a company that has repeatedly warned about the growing competitive pressure from Chinese brands.
- Farley discussed the joint venture framework with top Trump officials including the U.S. Trade Representative and Transportation Secretary.
- The proposal would require American companies to hold a controlling stake while sharing profits and technology with Chinese partners.
- Administration officials reportedly gave the idea a cool reception due to political and national security concerns.
A Reverse of China’s Own Playbook
For decades, Western automakers who wanted access to the Chinese market had no choice but to form joint ventures with domestic Chinese firms. Companies like Ford, GM, and Volkswagen all partnered up because that was the only way in. The Chinese government used that structure to build its own auto industry from the ground up, and it worked spectacularly well.
Now, with Chinese brands like BYD, Geely, and Xiaomi producing affordable electric vehicles at a blistering pace, Ford is proposing that exact same setup in reverse. Under the discussed framework, Chinese automakers would work with U.S. companies through joint ventures, with the American firm holding a controlling stake. Both parties would share profits and technology. It’s a structured way to welcome Chinese manufacturing capability without giving up control of the American market.
What Happened at the Detroit Auto Show
The preliminary conversations took place last month at the Detroit Auto Show and included U.S. Trade Representative Jamieson Greer, Transportation Secretary Sean Duffy, and Environmental Protection Agency Administrator Lee Zeldin. As Ford discusses potential joint ventures for Chinese automakers, the pitch centers on protecting American interests in a world where Chinese brands are quickly gaining ground.
The discussion came days after President Donald Trump indicated he’d be open to allowing Chinese automakers into the U.S. if they built plants and hired Americans. Trump’s January 13 comments at the Detroit Economic Club set the stage, though the idea remains in its early stages. No decision has been made, and those familiar with the talks described them as informal.
Farley wasn’t pushing hard for the joint venture option specifically, but rather raising it as one possible way to shape the rules before Chinese companies arrive on their own. Still, it got a chilly reception from the Trump officials involved, who felt it would face serious opposition in Washington.
Why Ford Is Even Considering This
The pressure on Ford and other legacy automakers is very real. For the first time, BYD sold more vehicles globally than Ford in 2025. BYD moved over 4.6 million new energy vehicles (EVs and PHEVs), while Ford reported total global sales just shy of 4.4 million. That’s a wake-up call for a company that has dominated the American market for over a century.
Farley has repeatedly said that Chinese automakers pose an “existential threat” to U.S. carmakers, pointing to their rapid technological progress and their ability to produce low-cost EVs. Ford executives have spent more and more time studying Chinese competitors in recent years, frequently traveling to China to evaluate vehicles and market positioning firsthand. Farley himself has driven a Xiaomi SU7, praising its digital experience and build quality.
Ford isn’t limiting its Chinese approach to the U.S., either. In recent weeks, Ford held talks with BYD about expanding a battery-supply partnership and looked into a manufacturing deal in Europe with China’s Geely, likely centered on Ford’s plant in Valencia, Spain. In December, Ford also expanded a licensing agreement with Chinese battery giant CATL, moving beyond building cells for electric vehicles to also manufacturing stationary power sources for utilities and data centers.
Where This Idea Goes From Here
The joint venture concept reportedly got a cool response from some administration officials, who believe such a move could face political pushback in Washington amid national security concerns. That skepticism reflects a broader view inside Trump’s cabinet that the U.S. should keep China’s automakers at arm’s length.
That said, some within the administration see an investment deal like this as a possible outcome of Trump’s planned meeting in Beijing with Chinese President Xi Jinping in April. And the competitive pressure isn’t letting up. Canada recently announced plans to allow certain Chinese EVs into its market, and brands like BYD are expanding quickly in Mexico, bringing them closer to the North American doorstep.
Ford finds itself in a tricky spot. The company recognizes the competitive gap, sees partnerships as one way to close it, and wants to write the rules before Chinese automakers show up uninvited. Whether this idea gains real political traction depends largely on how U.S.-China trade relations shake out over the coming months. For now, it’s a conversation starter that says a lot about where the global auto industry is headed.
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