Major automotive industry groups have urged President Donald Trump to maintain restrictions preventing Chinese automakers from entering the U.S. market ahead of his scheduled meeting with Chinese President Xi Jinping next week. The appeal comes amid ongoing concerns over national security and economic competition, as Chinese manufacturers seek greater access to the American automotive sector.
In a letter sent Friday and signed by six coalitions representing leading companies including General Motors, Toyota, Volkswagen, Ford, Hyundai, Stellantis, and Tesla, industry representatives called on the administration to keep "the door firmly shut" to Chinese automakers attempting to sell, import, or manufacture vehicles within the United States. The groups argued that allowing Chinese car companies to establish domestic production facilities would give them an unfair market foothold at the expense of established American manufacturers.
"Chinese automakers have zero market share in the U.S.," the letter stated. "Allowing them to open a domestic facility would provide a foothold in the U.S. market at the expense of manufacturers operating here." The signatories also cautioned that Chinese investment would not foster new American jobs but rather shift employment away from domestic manufacturers who have heavily invested in the U.S. market.
The groups represented include the Alliance for Automotive Innovation, American Automotive Policy Council, Autos Drive America, MEMA—The Vehicle Suppliers Association, National Automobile Dealers Association, and the Zero Emission Transportation Association. A White House representative and the Chinese embassy in Washington did not immediately respond to requests for comment.
Michigan Senator Elissa Slotkin, a Democrat, referenced reports suggesting that Chinese automaker BYD might accompany President Xi to Washington for the upcoming summit. She expressed concern that such a presence could signal moves to allow the importation or domestic production of Chinese vehicles. "If that happens, we can only assume there are deals afoot to allow Chinese cars to be imported, or Chinese companies are being invited to set up shop in the U.S.," she said.
The Biden administration implemented a regulation effective early next year that effectively blocks all Chinese automakers from selling or manufacturing passenger vehicles in the United States, citing national security risks related to data collection. The regulation targets technologies such as Bluetooth, Wi-Fi, cellular connectivity, and certain satellite communications under concerns that connected vehicles could transmit sensitive driver information to Chinese authorities.
In addition to regulatory measures, the U.S. currently imposes tariffs exceeding 100% on Chinese electric vehicles. Meanwhile, Congress is reviewing legislation that would further tighten restrictions on Chinese automotive companies seeking access to the American market.
The broader dispute reflects heightened tensions over technology transfer, data privacy, and economic competition as the two largest economies negotiate trade and strategic issues during what is shaping up to be a closely watched diplomatic engagement.