Major US automakers on Thursday urged Washington to prevent Chinese government-backed automakers and battery manufacturers from opening manufacturing plants in the United States, warning the industry’s future is at stake.
CATL, the world’s largest battery maker and one of Tesla’s main battery suppliers, started last month constructing a new factory in Spain as part of its expansion plans.
BYD, the world’s biggest new energy vehicle (NEV) manufacturer, opened its first factory in the Americas last June.
Located in Brazil, the facility commenced operations with an annual production capacity of 150,000 vehicles and is planned to expand to 300,000 units in the second phase.
The Alliance for Automotive Innovation, which represents General Motors, Ford, Toyota, Volkswagen, Hyundai, and other major automakers, called on Congress and the Trump administration to take action in a statement submitted for a US House hearing on Chinese vehicles.
“China poses a clear and present threat to the auto industry in the US,” the group wrote.
The alliance also urged lawmakers to maintain the US Commerce Department’s prohibition on importing information and communications technology and services from China.
With software-defined vehicles collecting vast amounts of sensitive data — including geolocation, audio and video recordings — through their Vehicle Connectivity Systems and Automated Driving Systems, the rule effectively bars the import of vehicles from Chinese manufacturers.
Trump-Xi Summit
The automaker lobbying effort unfolds against a backdrop of broader US-China trade relations that have warmed last October following a summit between President Donald Trump and Chinese President Xi Jinping.
Trump praised an “amazing” meeting with Xi at Busan airport in South Korea, capping off his tour of Asia. The meeting ended in a partial stand-down of ongoing trade tensions, including a reduction of tariffs on some Chinese goods entering the US
Beijing agreed to suspend export controls on rare earths — materials critical for technology from electric vehicles to defense systems.
Trump said China would also buy “massive” amounts of soybeans and other farm products.
Tariff Talks Resume in EU
As reported earlier on Thursday, China and the European Union have resumed tariff talks over a minimum price plan for Chinese-made electric vehicles.
“China welcomes the EU’s renewed commitment to restarting price undertaking negotiations and appreciates its return to the path of resolving differences through dialogue,” said He Yadong, a commerce ministry spokesperson, at a press conference.
The investigation, announced by Commission President Ursula von der Leyen in September 2023, found that China’s EV value chain benefits from unfair subsidization that threatens economic injury to EU producers.
The European Commission concluded its anti-subsidy investigation in October 2024, imposing definitive countervailing duties on Chinese-made fully electric vehicles for five years.
