It’s a tangled web, this idea of allowing Chinese auto manufacturers inside the US to assemble cars for US consumers and perhaps for export to other North American markets. Even before this presidency, Donald Trump has railed against communist China as a major economic and strategic threat because of large trade imbalances, unfair state subsidies for Chinese companies, intellectual property theft, espionage, and abusive labor conditions.
And yet, the 47th president appears to be rethinking his view of China, particularly with regard to the idea of Chinese companies building cars in the US.
New Jobs Must Have Changed Trump’s Mind
Last week during an interview on Fox News’ The Ingraham Angle, Trump said “I’d be OK with it” if Chinese automakers wanted to open plants in the US to assemble cars. “The big thing is they hire our people,” which is the same strategy that automakers from around the world have been doing on American soil for the past 40 years
And yet, the 47th president appears to be rethinking his view of China, particularly with regard to the idea of Chinese companies building cars in the US.
New Jobs Must Have Changed Trump’s Mind
Last week during an interview on Fox News’ The Ingraham Angle, Trump said “I’d be OK with it” if Chinese automakers wanted to open plants in the US to assemble cars. “The big thing is they hire our people,” which is the same strategy that automakers from around the world have been doing on American soil for the past 40 years.
But massive opposition has surfaced in the form of a letter sent yesterday to the White House from six US auto industry organizations representing domestic and transplant manufacturers, dealers, parts suppliers, trade representatives, and zero-emissions advocates. They are urging Trump to “maintain policies that keep the door firmly shut to Chinese automakers seeking to sell, import, or manufacture vehicles inside the US.”
Do Autos Take Center Stage During President Xi’s Visit?
When Chinese President Xi Jinping visits Washington next week and President Trump greets him on the tarmac, we wonder how soon the topic of auto manufacturing will come up. Based on the strongly worded Sept. 17 letter from the auto industry, it can’t come up soon enough. Signing the letter were the Alliance for Automotive Innovation, American Automotive Policy Council, National Automobile Dealers Assn., MEMA Vehicle Suppliers Assn., Autos Drive America, and the Zero Emission Transportation Assn. Collectively, these organizations represent nearly every facet of the entire US auto industry, including major automakers.
“Providing Chinese automakers with the ability to manufacture inside the US would undermine fair competition and jeopardize the progress your administration has already made to increase domestic automotive manufacturing, strengthen supply chains and prevent the US from facing the disruptions roiling global auto markets right now.”
–Sept. 17 Auto Industry Letter to White House