July 18, 2025 | China’s Auto Industry is About To Crush The Competition — and Ford’s CEO Knows It

Chinese automakers are rapidly dismantling the global pecking order—and there’s growing evidence they’re about to take the top spot.
Ford CEO Jim Farley has issued a stark warning: many Detroit automakers might not survive this existential threat.
Take Xiaomi’s new electric sedan, the SU7. Priced between US$35,340 and $45,995, this EV boasts specs that outclass most rivals:
- 835 km of range on the entry-level model
- 12-minute charge time from 10% to 80%
Farley has been driving one for six months. He’s not eager to go back to a gas-powered American car—and that says everything.
Xiaomi SU7 – Source: Xiaomi
In a fascinating recent interview, Farley openly wrestles with what China’s rapid rise means for the future of the U.S. auto industry. He doesn’t pull punches: even Ford’s survival, he admits, is not guaranteed. EV SPOTLIGHT: Xiaomi YU7 – the true unlock of the Software Defined Vehicle.
EV Spotlight: Xiaomi SU7 – The Software-Defined Disruptor
Farley has visited China 5 or 6 times in the past year, often with his entire leadership team in tow. Together, they’ve examined over 100 Chinese-made models—selecting a handful to bring back to the U.S. for deeper study.
He’s blunt: the U.S. should stop complaining about China’s political system and start embracing its cutting-edge automotive tech. “We need their IP,” he says.
It’s not just rhetoric. China is now the world’s largest EV market by far. In 2024, of the 10.8 million fully electric vehicles sold globally, China accounted for more than 60%. In the U.S.? Just 8% of car sales were fully electric.
The BYD Factor — and What Comes Next
Michael Dunne, former head of GM China, lays it out in a recent New York Times piece: BYD—China’s EV powerhouse—can’t sell in the U.S. right now due to tariffs. But that doesn’t matter.
In 4 to 5 years, Dunne predicts BYD will overtake Toyota and Volkswagen to become the world’s #1 carmaker—without needing access to the U.S. market. Their vehicles are better, cheaper, and more advanced than anything coming out of Detroit.
And this isn’t just about cars. By 2030, China is on track to control 45% of global manufacturing, dominating in solar panels, wind turbines, steel, aluminum, drones, and high-speed rail.
While U.S. executives complain about China’s government support for industry, consumers worldwide are voting with their wallets—and buying Chinese.
The Tipping Point
Elon Musk, whose Shanghai plant is Tesla’s crown jewel, put it bluntly: if trade barriers fall, Chinese carmakers will demolish their U.S. rivals.
Dunne’s conclusion is even sharper:
“China has overtaken Detroit as the center of the global auto industry. U.S. carmakers can hide behind tariffs, keep building gas-guzzling trucks and SUVs—and fade into irrelevance.”
Hilliard MacBeth
The opinions expressed in this report are the opinions of the author and readers should not assume they reflect the opinions or recommendations of Richardson Wealth or its affiliates. Assumptions, opinions and estimates constitute the author’s judgment as of the date of this material and are subject to change without notice. We do not warrant the completeness or accuracy of this material, and it should not be relied upon as such. Before acting on any recommendation, you should consider whether it is suitable for your particular circumstances and, if necessary, seek professional advice. Past performance is not indicative of future results. The comments contained herein are general in nature and are not intended to be, nor should be construed to be, legal or tax advice to any particular individual. Accordingly, individuals should consult their own legal or tax advisors for advice with respect to the tax consequences to them, having regard to their own particular circumstances.. Richardson Wealth is a member of Canadian Investor Protection Fund. Richardson Wealth is a trademark by its respective owners used under license by Richardson Wealth.
STAY INFORMED! Receive our Weekly Recap of thought provoking articles, podcasts, and radio delivered to your inbox for FREE! Sign up here for the HoweStreet.com Weekly Recap.
Hilliard MacBeth July 18th, 2025
Posted In: Hilliard's Weekend Notebook
Next: