Members of Select Committee on CCP Met With Ford, GM to Discuss Reliance on China for Parts
Members of the House Select Committee on the Chinese Communist Party met June 20 in Detroit with the CEOs of Ford and General Motors as well as leading automotive suppliers to discuss their reliance on China in their supply chains.
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Committee Chairman Mike Gallagher, R-Wis., Ranking Member Raja Krishnamoorthi, D-Ill., and Michigan Reps. Haley Stevens, a Democrat, and John Moolenaar, a Republican, paid particular attention to Ford's recently announced partnership with Ford and Contemporary Amperex Technology Co., Limited (CATL), a Chinese battery manufacturer, at a press conference following the meeting.
Gallagher expressed his personal concern that by allowing "any Chinese company" to become "the dominant player" in technology, it will allow China to "use the leverage that they have in order to coerce a foreign power." He said, according to a transcript, that "what we're trying to figure out in a bipartisan fashion is that for any American company that's looking to invest domestically in battery technology or processing, how do we make sure that they have a wide array of choices within the free world that they can choose from going forward so that in the future they're not subject to any CCP coercion or leverage." Gallagher made clear he was not speaking for the committee or Ford CEO Jim Farley.
When asked about whether the conversation with Farley eased Gallagher's concerns, Gallagher said that he hopes this is the "first of many" conversations. "I still think we're trying to figure out what is the best path forward where American companies can onshore the production of critical technology, how we can solve some of the problems we have when it comes to critical minerals and rare earth processing," and do that without relying on Chinese companies, Gallagher said. "Right now I don't have a silver bullet solution to that." Gallagher said that he hopes to continue the conversation and arrive at a solution that "balances the national security risk with the economic imperatives these companies face."
China controls 90% of the processing of critical minerals, Krishnamoorthi said. "We have to kind of come up with some innovative solutions here. Otherwise, we know that the CCP will use this as a source of leverage against us or our friends or partners or allies."
Krishnamoorthi also noted that Ford's willingness to try and win "the competition worldwide, in selling the best, most innovative electric vehicles," is something that stood out in the meeting. "That means taking different strategies. That also means betting on different technologies and working with different companies around the world. I think that the other thing that just leapt out at me is that we in government can do more to make sure there's a level playing field, even as our, you know, businesses and others are trying to compete."
The CATL deal doesn't give Ford control over the technology, only licensing access to it, Gallagher said.
Gallagher also said that there are "some very innovative American companies" that are working to help improve existing technology and reduce reliance on China. "I think if you get the right set of partnerships between major automotive companies, these next-generation battery technology companies and state and local and federal partners, I think it could be an exciting time," Gallagher said.