Ford CEO Jim Farley has warned that allowing Chinese electric vehicles into the United States could seriously damage the American auto industry, stressing that the issue is not just about competition, but about the future of domestic manufacturing as a whole.
Farley, who has previously praised the quality of Chinese EVs and driven some himself, had earlier revealed that he tested the Xiaomi SU7 for several months and was highly impressed by it. Despite that, he said in an interview with American media that he does not believe the U.S. market should be opened to these vehicles, as doing so could lead to the loss of thousands of jobs and weaken the ability of American automakers to compete.
“We should not let them into our country,” he said, adding that manufacturing is the heart of the American economy and that losing it to Chinese imports would be a major blow to the United States.
The Ford chief believes the competition with China is unfair because the Chinese government has poured massive support into the EV sector, giving local companies the ability to cut prices and boost production on a huge scale. He noted that China has more than 100 EV makers, including BYD and Xiaomi, which are often able to build cheaper and more advanced vehicles than their American rivals.
This extensive government support has triggered a fierce price war in China, while Chinese EVs have gradually started spreading beyond the domestic market, particularly in Europe and Canada, where these markets have become more open to Chinese imports.
Farley pointed out that China’s domestic market absorbs around 29 million vehicles annually, while the country’s total production capacity exceeds 50 million vehicles, enough to cover the entire U.S. auto market and more.
He also stressed that the concerns go beyond pricing and competition, extending to cybersecurity and privacy issues, as Chinese vehicles rely heavily on cameras and smart systems capable of collecting large amounts of data. For this reason, the U.S. previously imposed restrictions on certain Chinese connectivity technologies used in vehicles.
Farley also commented on Canada’s new policy allowing a limited number of Chinese vehicles to enter at lower tariff rates, expressing hope that these cars would not gain easy access to the U.S. market through the Canadian border.
Farley is not alone in these concerns. Lobbying groups representing the American auto industry have joined Republican and Democratic politicians in calling for limits on Chinese automakers’ expansion in the United States, arguing that it poses significant economic and national security risks.
On the other hand, some believe that continuing this kind of trade protection could deprive American consumers of the latest EV technologies being developed in China, including battery swapping, ultra-fast charging, and other advanced features that many American automakers still lag behind in.
In closing, Farley said Ford is currently developing a new generation of affordable electric vehicles capable of competing with Chinese brands globally, noting that these future models will be built in Kentucky.
