US auto industry urges Trump to close market to Chinese automakers — CNBC
In the United States, leaders of six major automotive industry associations have urged President Donald Trump to maintain policies that would prevent Chinese automakers from selling, importing, and manufacturing vehicles in the country.
Letter ahead of Xi Jinping’s visit
As CNBC Top News reports, the letter to the president is dated Thursday. It came ahead of Trump’s expected meeting next week with Chinese President Xi Jinping in Washington.
The letter’s authors urged the administration to retain restrictions on Chinese companies seeking to sell, import, or manufacture vehicles in the United States. In their view, the automotive sector is an important part of the country’s advanced manufacturing and defense base, which has production capacity and workers able to respond to emergencies. They also believe that once such a base is lost, it cannot be quickly restored.
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Industry arguments
The association leaders said allowing Chinese automakers to establish production in the United States would undermine fair competition and jeopardize the administration’s progress in preventing China’s dominance in key industries. CNBC notes that Chinese automakers receive substantial government subsidies and are rapidly expanding their presence outside China.
On September 11, Trump said on Fox News that he would not object to Chinese companies opening automobile plants in the United States.
The letter was signed by representatives of six trade associations representing automakers, suppliers, and franchised dealers. According to CNBC, they cover all major vehicle manufacturers operating in the United States, including Tesla and foreign companies, as well as about 17,000 franchised dealers.
