- Trump says Chinese automakers could build vehicles in America.
- The President wants US factories employing American workers.
- Automakers are lobbying Congress for a Chinese vehicle ban.
President Donald Trump says he’s fine with Chinese automakers coming to America. There’s just one major condition. They need to build their cars here and hire Americans to do it. That’s a rather different message from the one coming out of Detroit, where automakers are pushing Congress to permanently shut the door on Chinese vehicles.
“If China wanted to come in and open a plant to build their cars here, I’d be okay with that,” Trump told Fox News’ The Ingraham Angle on Friday. Trump compared the idea to Japanese automakers operating factories across the United States, emphasizing the jobs those plants create.
Read: America Blocked Chinese Cars For Years, Now It May Invite Them
What he doesn’t want, he said, is Chinese automakers setting up production in Mexico and shipping those vehicles north into the US. “I’m not knocking Chinese cars,” he added. These comments came moments after saying that he wouldn’t allow them in. The position puts Trump in an interesting spot relative to America’s own auto industry.
Earlier this month, the Alliance for Automotive Innovation urged congressional leaders to enact a “permanent ban on the sale, import and manufacture of Chinese connected vehicles, hardware and software.” The group represents most major automakers operating in America and argues that China’s heavily subsidized auto industry poses economic and national-security threats.
Chinese automakers are already effectively locked out of the American new-car market. Rules finalized under the Biden administration restrict connected-vehicle hardware and software linked to China and Russia, while tariffs provide another substantial barrier. A Senate committee advanced legislation in July that would make the restrictions even tougher.
More: Chinese Brands Got So Fast At Developing New Cars Even China Thinks They Should Slow Down
Interestingly, Trump’s comments aren’t a sudden reversal. He has previously said he’d welcome Chinese automakers if they invested in American manufacturing and created American jobs. The comments also arrive amid some confusing signals from Washington.
The Trump administration has recently criticized Ford over its relationships with Chinese companies, including battery giant CATL and Geely, even as Trump has praised Ford’s investment in US manufacturing. Ford CEO Jim Farley, meanwhile, has repeatedly warned about the competitive threat posed by China’s rapidly advancing auto industry.
So, could BYD, Geely or another Chinese giant eventually build cars in Michigan, Texas or somewhere else in America? Under today’s rules, that would be exceedingly difficult. But the president just made it pretty clear he isn’t opposed to the idea.
