A coalition of US automakers, parts suppliers and dealers has written to President Donald Trump urging him to keep Chinese carmakers out of the US market, according to a letter seen by Bloomberg and reported by Chinese outlet Gasgoo. The appeal comes as Washington and Beijing prepare for a summit this week, and follows recent signals from Trump that he might welcome Chinese investment in US plants.
The letter, signed by groups including the Alliance for Automotive Innovation (which represents Ford, General Motors, Toyota and Volkswagen), Autos Drive America, the American Automotive Policy Council and the National Automobile Dealers Association, argues that existing restrictions are essential to fair competition. "We urge the government to continue its policies and resolutely prevent Chinese carmakers from selling, importing or manufacturing vehicles in the United States," the coalition wrote.
The group also cited security and economic risks from Chinese electric vehicles (EVs) and intelligent connected vehicle technology. "Allowing Chinese carmakers to establish local production facilities in the US would provide them a foothold in our market at the expense of other manufacturers operating here," the letter said. "Localized production by Chinese companies would not serve the administration's goals for manufacturing jobs or national security."
Pressure escalates as summit nears
This is not the first time the industry has lobbied against Chinese entry, but the direct appeal to the White House marks an escalation. Earlier this year, Trump said he would be "very happy" to see Chinese carmakers build plants in the US, and he recently reiterated that he would allow a Chinese company to build cars in America if it hired US workers. Those comments have alarmed domestic manufacturers, who fear that Chinese firms could undercut them on price, especially in the EV segment.
This week, the issue gained urgency after Bloomberg reported that several Chinese companies, including BYD, might accompany the Chinese government delegation to the Washington summit. A Democratic senator from Michigan said: "If the reports are true, we can only speculate that agreements are being drafted — either to allow Chinese car imports or to invite Chinese companies to set up factories in the United States."
Chinese carmakers have expanded rapidly in global markets in recent years, gaining share in mature markets like Europe and moving closer to the US. Canada has recently allowed some Chinese EVs into its market, and BYD vehicles are common in Mexico. In the US, Chinese cars are largely blocked by high tariffs and a Commerce Department ban on "connected vehicle systems" from "foreign adversaries." The industry now wants Congress to codify a permanent ban on Chinese cars and related technology.
Several bills under consideration could advance that goal. The Connected Vehicle Security Act passed a Senate committee in July. Earlier this month, the Alliance for Automotive Innovation also wrote to Congress urging lawmakers to prohibit Chinese intelligent connected vehicles and their software and hardware before the current session ends in January.
