Ford CEO Jim Farley told employees that Chinese automakers could enter the US market within a five-to-10-year period. During an employee town hall, Farley and other senior executives suggested that a Chinese incursion into the US market is more likely to occur toward the later end of that timeframe.
Chinese automakers are currently effectively locked out of the US market by financial and regulatory barriers. US connected-vehicle regulations progressively restrict Chinese software and hardware. A US Commerce Department rule bans Chinese software by model year 2027 and hardware by model year 2030.
The approximate tariff Chinese cars will face in the US as of 2026.
Polestar, which is mostly owned by China's Geely, is forced to exit the US after model year 2026, despite producing its 3 SUV at a Volvo plant in South Carolina, US. Meanwhile, Ford Executive Chairman Bill Ford stated, “We can’t expect to keep them out forever, and we have to be able to beat them at their own game.”
Global market presence
Chinese brands have established a major presence in Mexico, while Canada is allowing a limited number of Chinese EVs into its market. In Europe, Chinese automakers account for roughly one in 10 sales, and Ford is working with Geely in Spain to produce vehicles.