Daijiworld Media Network - Washington
Washington, Sep 12: US President Donald Trump has indicated that he would be open to Chinese automakers setting up manufacturing plants in the United States and producing electric vehicles with American workers, while maintaining that Chinese-made vehicles would not be allowed to enter the US market directly.
In an interview with Fox News, Trump rejected suggestions that his administration was preparing to allow Chinese cars to be imported into the United States. He said the US had not allowed such imports and warned that the American automobile market could otherwise be overwhelmed by Chinese vehicles.
Trump said he would be willing to allow Chinese companies to establish plants in the US if they employed American workers. He cited Japan's automobile industry as an example of foreign companies manufacturing vehicles in the United States while employing local workers.
However, Trump strongly opposed Chinese companies manufacturing vehicles in Mexico and then exporting them across the US border. He said such a model would not be permitted.
The comments come as Chinese electric vehicle manufacturers such as BYD and Geely continue to expand their presence in global markets. Chinese EVs are increasingly visible in countries including Canada and Mexico, raising concerns among US automobile executives that Chinese manufacturers could eventually seek direct access to the American market.
Chinese vehicles are currently effectively shut out of the US market by steep tariffs and restrictions imposed on connected vehicle technology from countries considered US adversaries, including China. A 2025 regulation also bars the sale or production of Chinese passenger vehicles in the United States, while high tariffs remain on Chinese electric vehicles.
Trump's latest comments come ahead of his planned meeting with Chinese President Xi Jinping in Washington. The two leaders are expected to discuss a range of economic and trade issues.
Trump has previously expressed openness to Chinese automakers establishing manufacturing operations in the US. In a January speech at the Detroit Economic Club, he said Chinese companies could be allowed to build plants in the United States if they hired American workers.
Earlier this year, Ford CEO Jim Farley and members of Trump's Cabinet also held preliminary discussions on a possible framework under which Chinese automakers could manufacture vehicles in the US while providing safeguards for American companies. No decision was reached on the proposal, according to people familiar with the discussions.
The possibility of allowing Chinese automakers into the US market has drawn opposition from lawmakers and the domestic automobile industry.
Michigan Democratic Senator Elissa Slotkin has warned against allowing Chinese vehicles to enter the US market, saying such a move could harm the American automobile industry and manufacturing capacity and put jobs at risk.
Trump dismissed reports that he was planning to allow Chinese cars to be sold in the United States as a "total phony rumor" and said he was the person preventing Chinese vehicles from entering the American market.
Slotkin and Ohio Republican Senator Bernie Moreno have introduced legislation seeking to prohibit connected vehicles, software and hardware linked to countries considered US adversaries, including China. The proposal has received backing from major US automakers Ford and General Motors as well as the United Auto Workers.
The proposed legislation would prohibit the sale of connected vehicles made by automakers that are more than 15 per cent owned by Chinese entities. However, the provision has raised concerns that it could unintentionally affect other foreign automakers with significant Chinese ownership, including Mercedes-Benz.
US auto industry representatives have also urged Washington to maintain restrictions on Chinese vehicles, citing concerns over subsidised Chinese cars, connected technologies, data security and the potential impact on American manufacturing.
Trump's position therefore appears to draw a distinction between Chinese vehicles being imported into the US and Chinese companies investing in US-based manufacturing. While he has ruled out opening the American market to direct Chinese vehicle imports, he has indicated that Chinese companies could potentially manufacture vehicles inside the United States if they create American jobs.