Ford Motor Company has come under scrutiny following revelations about its plans to contract technology from Chinese companies associated with China’s communist government, military, and the North Korean government. The disclosure surfaced through letters released by Rep. Mike Gallagher (R-WI), chairman of the House Select Committee on the Chinese Communist Party, and Rep. Cathy McMorris Rodgers (R-WA), chairwoman of the House Committee on Energy and Commerce.
The spotlight on Ford intensified due to its partnership with Contemporary Amperex Technology (CATL), a Chinese electric vehicle battery manufacturer. The scrutiny coincides with Ford’s significant financial losses in its electric vehicle production endeavors. The company recently announced employee cutbacks in response to lower-than-expected demand, prompting a 50% reduction in electric vehicle production.
Ford’s engagement with four specific Chinese companies, working in conjunction with CATL, has raised concerns. According to the letters, these companies are slated to play integral roles in the design, construction, and information technology (IT) processes of a proposed U.S. battery facility. However, the names of these four companies were redacted in the letters addressed to Commerce Secretary Gina Raimondo and Treasury Secretary Janet Yellen.
The letters recommended that the U.S. government initiate investigations into these companies due to their alleged “direct ties to the [Chinese military], the [Chinese Communist Party], China’s Ministry of Public Security, the ongoing genocide of Uyghur Muslims in Xinjiang, and the North Korean government.”
The concerns expressed in the letters extend beyond geopolitical considerations to include cybersecurity risks. The lawmakers highlight the potential for malicious activities, emphasizing that one of the companies involved in the IT infrastructure has been implicated in activities facilitating sanctions evasion on behalf of the North Korean government. The letter underscores the serious cybersecurity risks, including the possibility of embedding backdoors, spyware, and other forms of malware within Ford’s IT infrastructure, jeopardizing the confidentiality and integrity of sensitive information.
In essence, the letters urge the U.S. government to thoroughly investigate these Chinese companies’ connections and activities and underscore the ethical and security implications of Ford’s collaboration with entities linked to geopolitical controversies and potential cybersecurity threats. The controversy surrounding Ford’s associations raises important questions about the balance between international business partnerships and safeguarding national security interests.