US House China Committee to Meet with Ford and GM on 20th... Pressuring 'Decoupling from China'

The U.S. Congress is pressuring the American automotive industry to reduce its dependence on Chinese supply chains.

On the 19th (local time), Bloomberg reported that four members of the U.S. House of Representatives' China Strategy Competition Subcommittee plan to visit Detroit, Michigan on the 20th to meet with Jim Farley, CEO of Ford, and Mary Barra, CEO of GM.

Gallagher, Chairman of the U.S. House China Special Committee
[Photo by Yonhap News]

Republican Mike Gallagher, chairman of the subcommittee, along with Representative John Moolenaar, and Democrats Raja Krishnamoorthi, the ranking member, and Haley Stevens intend to raise concerns about the automotive industry's reliance on China, including Ford's joint venture with Chinese battery maker CATL, during their meetings with the CEOs.

Earlier, Ford announced plans to build a battery factory in Michigan in partnership with CATL, sparking controversy. If this plan is implemented, Ford could utilize Chinese technology while also benefiting from subsidies under the U.S. Inflation Reduction Act (IRA).

This has led to criticism within U.S. political circles that Ford's actions contradict the IRA's intent to reduce dependence on China.

Bloomberg reported that the lawmakers expect CATL to be closely linked with the Chinese Communist Party and to engage in low-price competition against American companies thanks to subsidies from the Chinese government.

Additionally, the lawmakers plan to question whether Ford and GM procure automotive parts made by Uyghurs subjected to forced labor in China's Xinjiang region.

This content was produced with the assistance of AI translation services.