Pressure Builds Over Chinese Automakers’ U.S. Entry

Pressure Builds Over Chinese Automakers’ U.S. Entry

Pressure is mounting on the Trump administration to maintain restrictions on Chinese automakers as the president prepares to meet with Chinese President Xi Jinping this week.

Bloomberg News reported Friday that a coalition representing automakers, suppliers and dealers had urged President Donald Trump to preserve existing barriers keeping Chinese vehicles and connected-car technology out of the U.S. market. The coalition said subsidized Chinese vehicles and vehicle technology could create economic and security concerns.

The National Automobile Dealers Association was among the groups signing the letter, along with major automotive trade organizations representing manufacturers and suppliers.

On Monday, 27 Democratic lawmakers separately urged Trump to maintain protections against Chinese automobiles and connected-vehicle technologies. Their letter called for preventing China from gaining access to the U.S. market through vehicle imports, local production or other means.

The renewed pressure comes after Trump said earlier this month that he would be open to Chinese automakers building vehicles in the United States, provided they employ American workers.

That has created a distinction in the policy debate between allowing Chinese-built vehicles into the U.S. and allowing Chinese automakers to establish manufacturing operations on American soil.

For U.S. dealers, the issue remains largely prospective. Chinese automakers currently have limited direct access to the U.S. passenger-vehicle market, but a change in policy could eventually introduce new competitors and vehicle brands into the market.

The timing is significant. Xi is scheduled to visit the United States Sept. 23-25 for meetings with Trump, putting automotive trade and market access among the issues receiving renewed attention.