A Xi-Trump summit deal can throw US carmakers under the China bus

Key Points:

• US automakers, suppliers, and dealers are lobbying the Trump administration to block Chinese carmakers from entering the US market, citing economic and national security risks ahead of President Trump’s meeting with Chinese President Xi Jinping.
• The lobbying effort was triggered by Trump’s remarks suggesting he might allow Chinese companies to build vehicles in the US if they employed American workers, raising fears of market access concessions in a broader trade deal.
• Industry groups representing major automakers like GM, Ford, Toyota, and Tesla urged the administration to maintain strict policies preventing Chinese firms from selling, importing, or manufacturing vehicles domestically.
• Lawmakers from both parties expressed concern about potential backdoor agreements and are pushing for explicit denials of any concessions to Chinese automakers, while bipartisan legislation aims to permanently ban connected vehicles tied to foreign adversaries.
• The US automotive sector fears that allowing Chinese entry could replicate the industrial displacement seen in Europe, where state-backed Chinese electric vehicles disrupted local markets despite anti-subsidy tariffs and regulatory efforts.