Ford CEO Explores US-China Joint Venture Model for Chinese Automakers

Ford CEO Jim Farley has explored a potential US-China joint venture framework that could allow Chinese automakers to manufacture vehicles in the United States through structured partnerships with American car companies. The concept, discussed with senior Trump administration officials, mirrors the model China used decades ago when it required foreign automakers to form joint ventures with local firms. Under the proposed US-China joint venture approach, American manufacturers would retain controlling stakes while enabling technology and profit sharing between both countries.

Framework of the US-China Joint Venture Proposal

According to reports, the US-China joint venture structure would allow Chinese automakers to produce vehicles on American soil through partnerships with established American car companies. Crucially, US firms would hold majority ownership, ensuring domestic control over operations and strategic decisions.
The proposed US-China joint venture model is designed to facilitate shared access to advanced manufacturing capabilities, supply chain integration, and intellectual property. Supporters argue that such a framework could strengthen industrial competitiveness while attracting foreign investment into the United States.

Discussions with the Trump Administration

Farley reportedly presented the US-China joint venture concept during meetings with senior Trump administration officials at the Detroit Auto Show. Participants included US Trade Representative Jamieson Greer, Transportation Secretary Sean Duffy, and Environmental Protection Agency Administrator Lee Zeldin.
The discussions followed public remarks by President Donald Trump expressing openness to Chinese automakers establishing factories in the United States and hiring American workers. During a January 13 speech at the Detroit Economic Club, Trump stated, "Let China come in."
Despite the exploratory nature of the proposal, administration officials were said to have responded cautiously, citing potential political resistance in Washington.

Historical Context: China?s Original Joint Venture Strategy

The US-China joint venture discussion draws clear parallels to China?s early automotive policy. When China?s auto industry was in its infancy, foreign automakers were required to enter the market through joint ventures with domestic manufacturers. This approach ensured technology transfer and local capability development.
Over time, China progressively relaxed these requirements. Domestic brands strengthened their competitiveness, and policy shifts eventually permitted wholly foreign-owned operations in certain cases.

Shift Toward Wholly-Owned Manufacturing

In January 2019, Tesla began construction of its Shanghai factory, which became China?s first wholly foreign-owned auto manufacturing project later that year. The move marked a significant departure from the earlier mandatory joint venture system.
More recently, Toyota announced plans to build a wholly-owned electric vehicles plant in Shanghai to manufacture Lexus models. Construction began in June 2025, with completion expected in August 2026 and production scheduled for 2027. Lexus is set to become the second foreign automaker after Tesla to operate a wholly-owned vehicle manufacturing facility in China.

Implications for Chinese Automakers and American Car Companies

If implemented, a US-China joint venture model could reshape collaboration between Chinese automakers and American car companies. For Chinese manufacturers, it would provide access to the US market under structured ownership safeguards. For American car companies, it could offer capital inflows, shared innovation in electric vehicles, and expanded manufacturing activity.
However, political sensitivities remain significant. While some officials believe an investment agreement could emerge amid broader diplomatic engagement, others expect strong scrutiny from policymakers concerned about national security, technology control, and industrial policy.
Ford has not formally advanced the US-China joint venture proposal, and separate reports suggesting potential collaboration with Xiaomi on electric vehicles were later denied. The broader debate over foreign participation in US auto manufacturing continues as global competition intensifies and supply chains evolve.