United States Auto Industry Writes to Trump Ahead of Xi Jinping Visit: "Chinese Automakers Must Be Kept Out"

[Financial News]  

The United States auto industry has urged President Donald Trump in a letter to restrict Chinese automakers' access to the United States market.
According to U.S. business outlet CNBC on the 18th local time, the auto industry urged Trump in a confidential letter dated the 17th to maintain current policies that would make it difficult or impossible for Chinese automakers to operate in the United States market. The signatories included franchise dealers, parts suppliers, and domestic and foreign automakers. Representatives of all six automotive industry associations active in the United States signed the letter, along with automakers including Tesla and approximately 17,000 franchise dealers.
They urged the president, "We must continue policies that keep the door shut so Chinese automakers cannot sell, import, or manufacture vehicles in the United States."
The letter emphasized, "The automotive sector is the foundation of our advanced manufacturing and defense industries, and its production capacity and workforce will be needed in times of national emergency. Once this foundation collapses, it cannot be rebuilt overnight."
The letter was issued ahead of Xi Jinping's state visit to the United States, scheduled for the 24th.
Meanwhile, Trump hinted last week at the possibility of allowing Chinese automakers to manufacture vehicles in the United States. In an interview with Fox News on the 11th, he said, "If China came to America, opened a factory, and made cars, I would be OK with that."
The letter warned that Chinese companies manufacturing vehicles in the United States could "undermine fair competition and jeopardize the administration's efforts to prevent China from dominating critical industries." That is because Chinese companies receive massive government subsidies and use them as a springboard to expand their influence overseas. Massive subsidies are often cited as the reason Chinese automakers whose economics do not add up—and which should already have gone bankrupt in a capitalist economy—have continued to grow strongly and dominate foreign markets.

[email protected] Song Kyung-jae Reporter