The writer is the author of ‘Chip War’
This month, Ford and China’s Xiaomi both denied reports that they were considering a joint venture to produce vehicles in the US. Their denials are unlikely to stop the rumours. Such a tie-up has logic: legacy automakers in the west need Chinese electric vehicle expertise while Chinese companies need access to the lucrative US car market.
The main obstacle facing Chinese auto manufacturers hoping to sell to US customers is not tariffs but rules that restrict the use of Chinese connectivity systems. Cars sold in the US can use Chinese plastic and glass, but they cannot use Chinese communications chips or software for autonomous driving.
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