Trump faces backlash after saying he will allow China to build cars inside the United States… but under strict condition
Donald Trump has provoked criticism after saying he would allow Chinese carmakers to build vehicles inside the United States, provided their factories employ American workers. The comments, made in a Fox News interview, alarmed critics who fear that admitting Chinese manufacturers could overwhelm the domestic car industry, and they cut against pressure from major US and international automakers who want Chinese vehicles kept out entirely.
Trump cited Japan as a precedent, saying its firms operate US plants that hire American staff, and stressed he would not accept Chinese companies building cars in Mexico for export to the US. Democratic Senator Elissa Slotkin of Michigan warned it would be a "strategic mistake" and said she had heard rumours such a move was part of a wider deal, a claim Trump dismissed as a "total phony rumor". Meanwhile the Alliance for Automotive Innovation, representing firms including GM, Ford, Toyota and Honda, has urged Congress to permanently ban the sale, import and manufacture of Chinese connected vehicles, with Trump's remarks coming ahead of a planned meeting with China's Xi Jinping in Washington in two weeks.
- Trump open to Chinese car factories in US if they hire Americans
- Critics warn move could devastate domestic auto industry
- US carmakers lobbying Congress for a permanent ban instead
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Donald Trump is the President of the United States. Car manufacturing, especially in states like Michigan, has long been a politically sensitive industry in America because it supports large numbers of jobs, and Chinese-made vehicles are widely seen by US politicians and manufacturers as a competitive and security threat, partly due to their low prices and partly due to concerns about connected technology in the cars.
For several years, Washington has restricted Chinese cars from the US market, and American car companies alongside foreign firms already operating factories in the US, such as Toyota and Honda, have pushed for those restrictions to be tightened further rather than relaxed. Elissa Slotkin is a Democratic senator from Michigan, a state heavily reliant on the domestic car industry, making her a prominent voice on this issue.
The topic has gained added significance because it touches on the broader US-China relationship, which includes trade, technology and manufacturing disputes, and because Trump is due to meet China's leader, Xi Jinping, in Washington in the coming weeks.