Major U.S. auto industry groups are urging President Donald Trump to maintain restrictions on Chinese automakers entering the American market, just days before his scheduled meeting with Chinese President Xi Jinping in Washington.
The push comes after Trump recently said he would be open to Chinese automakers building vehicles in the United States — a position that has drawn concern from major manufacturers, suppliers and dealers.
Auto Groups Send Message to Trump
Six major industry organizations representing companies including General Motors, Ford, Tesla, Toyota, Volkswagen, Hyundai and Stellantis sent a letter urging the administration to keep existing restrictions in place.
The groups argue that allowing Chinese automakers to sell, import or manufacture vehicles in the United States could put pressure on companies that have already invested heavily in American factories and workers.
They also raised concerns that Chinese companies could gain a significant foothold in the U.S. auto market.
Trump Has Signaled Openness to Chinese Factories
Trump said last week that he would be comfortable with Chinese automakers opening factories in the United States if those plants employed American workers.
His comments have renewed debate over whether Chinese brands could eventually gain access to one of the world’s largest automotive markets.
Chinese automakers currently have virtually no presence in the U.S. passenger vehicle market.
BYD Could Be Part of Xi’s U.S. Visit
The issue could become even more significant next week.
Reuters reported that executives from major Chinese companies, potentially including electric vehicle giant BYD, battery manufacturers CATL and Gotion, and technology company Xiaomi, are being considered for a business delegation accompanying Xi during his U.S. visit.
The final list has not yet been confirmed.
Xi is scheduled to meet Trump in Washington on September 24, with trade, technology, critical minerals and other major U.S.-China issues expected to be discussed.
Chinese Cars Already Face Major U.S. Restrictions
Chinese electric vehicles face tariffs of more than 100% in the United States.
Existing U.S. regulations also restrict China-linked connected vehicle technology over national security and data-security concerns.
Those rules cover technologies including cellular connectivity, Wi-Fi, Bluetooth and other systems capable of collecting or transmitting vehicle data.
Congress is also considering legislation that could strengthen restrictions on Chinese vehicles.
A Major Issue Ahead of Trump-Xi Talks
The dispute puts the future of Chinese automakers in America directly into the broader U.S.-China economic debate.
Trump has argued that foreign companies building factories in America can create U.S. jobs, while auto industry groups contend that allowing Chinese manufacturers into the market could threaten existing investments and employment.
With Trump and Xi preparing to meet next week, the future of Chinese automakers in the United States could become another important issue to watch.