Over 70 U.S. House Members Urge Trump to Ban Chinese Automakers from Manufacturing and Selling in the U.S.
Backlash Against Moves to Ease Barriers for Chinese Automakers Entering the U.S.
"Direct Threat to American Manufacturing, Workers, and National Security"
Senate Also Preparing Legislation to Ban Imports of Chinese-Made Vehicles
Dozens of Democratic members of the U.S. House of Representatives have urged President Donald Trump to "ban Chinese automakers from manufacturing and selling in the United States."
People attending the 'Auto China' event held in Beijing, China on the 24th. Photo by Reuters and Yonhap News Agency
View original imageAccording to Yonhap News Agency, on the 28th (local time), The Wall Street Journal (WSJ) reported that "over 70 Democratic House members, including Debbie Dingell, sent a letter to President Trump, stating that 'any attempt to lower barriers for Chinese automakers to enter the U.S. would pose a direct threat to American manufacturing, workers, and national security.'"
In the letter, the lawmakers defined this as an "uncompromisable top priority." They went on to say, "We must not give up the U.S. automotive industry to a strategic competitor aiming for global dominance," and demanded the maintenance of existing tariffs on Chinese automakers and vehicles, a ban on the establishment of production facilities in the U.S., and stricter regulations on vehicles imported via Mexico and Canada.
Chinese automakers are rapidly expanding their influence in the global market by leveraging their battery technology and price competitiveness. According to Deloitte, by 2025, local brands are expected to account for over 60% of the entire Chinese automotive market, and when looking at just the electric vehicle market, their share reaches 90%. In the global finished vehicle market, China's BYD has already overtaken Tesla to become the top seller in terms of sales volume.
However, in the U.S. market, Chinese automakers have faced difficulties entering due to high tariffs and restrictions on connected vehicle software. The tariff rate for electric vehicles is as high as 100%. With the U.S.-China summit scheduled for next month, there is growing speculation that Chinese high-tech companies could enter the U.S. market, prompting lawmakers to voice their opposition.
Previously, President Trump stated that he would permit Chinese manufacturers to enter the U.S. "if they build factories in the United States and hire American workers." In response, some Chinese companies expressed at last week's Beijing Motor Show that they would like to enter the U.S. market "if the political environment becomes more favorable." Zhejiang Geely Holding Group, which holds shares in Volvo and Polestar, also stated, "We hope to expand into the U.S. market through our brand portfolio."
Meanwhile, the U.S. Senate is also preparing a bill to ban the import of Chinese-made automobiles. Democratic Senators Chuck Schumer, Tammy Baldwin, and Elissa Slotkin warned in a separate letter to the White House earlier this month that "bringing Chinese automakers into the United States would trigger an irreversible national security crisis for the American automotive industry."
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There is also a hardline stance emerging from the Republican Party. Republican Senator Bernie Moreno emphasized at a forum held ahead of last month's New York Auto Show, "There is absolutely no scenario in which Chinese cars enter our market—whether hardware, software, or partnerships." Senator Moreno added, "We will prevent a cancer from spreading in our market. Other nations must join in this fight against cancer," calling on Mexico, Canada, Europe, and Latin America to adopt the same standards.
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