Leaders of six major auto trade groups have sent a letter to President Donald Trump urging him to maintain policies that 'keep the door firmly shut' for Chinese automakers seeking to operate in the United States, ahead of Chinese President Xi Jinping’s visit to Washington, D.C., next week [1]. The letter, dated September 18, was viewed by CNBC and represents a unified coalition of trade associations covering every major automaker in the U.S., including Tesla and foreign automakers, as well as approximately 17,000 franchised dealers [1].
The industry leaders argue that permitting Chinese automakers to manufacture vehicles in the U.S. would 'undermine fair competition and jeopardize the progress' made in preventing 'Chinese dominance in key industries' [1]. They emphasize the foundational role of the automotive sector in advanced manufacturing and national defense, warning that once the domestic base is hollowed out, it cannot be rebuilt overnight [1].
This letter follows President Trump's recent statement on Fox News' 'The Ingraham Angle' on September 11, where he indicated openness to Chinese automakers establishing manufacturing plants in the U.S., saying, 'If China wanted to come in and open a plant to build their cars here, I'd be OK with it' [1]. The trade groups counter that Chinese automakers are heavily subsidized by their government and are rapidly expanding outside China, which could threaten U.S. industry competitiveness [1].
The letter marks the latest in a series of communications from the automotive sector to the Trump administration, but is notable for its unified stance across domestic and foreign automakers, suppliers, and dealers [1].
CONCLUSION
The U.S. automotive industry is strongly opposed to allowing Chinese automakers to enter the domestic market, citing concerns over fair competition and national security. With President Trump expressing openness to Chinese manufacturing in the U.S., the industry's unified response signals significant market and policy implications ahead of the upcoming meeting with President Xi Jinping.