Major automakers say China poses a "clear and present danger" to the US auto industry
Kyiv • UNN
Leading US automakers have urged Washington to prevent state-backed Chinese automakers and battery manufacturers from opening factories. They warn that China poses a direct threat to the US auto industry due to subsidies and oversupply.
The largest automakers on Thursday urged Washington to prevent state-funded Chinese automakers and battery manufacturers from opening factories in the United States, warning that the future of the industry is at stake, UNN reports.
The Alliance for Automotive Innovation, representing General Motors, Ford, Toyota Motor, Volkswagen, Hyundai, Stellantis, and other major automakers, raised the alarm and said that Congress and the Trump administration need to take action.
"China is a clear and present danger to the U.S. auto industry," the group said in a statement prepared for a U.S. House hearing on Chinese cars. The group also said that lawmakers should maintain the U.S. Commerce Department's ban on importing information and communication technologies and services from China, which effectively prohibits the import of vehicles from Chinese manufacturers.
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"No amount of investment by automakers and battery manufacturers operating in the U.S. can counter China, which, through subsidies, chronically creates oversupply worldwide. This is a recipe for dumping that Congress and the Trump administration must prevent within the U.S.," the automotive industry group said.
Representative John Moolenaar, a Republican who chairs the House Select Committee on China, said Congress should codify bans on China-linked vehicles that were enacted in the final days of former President Joe Biden's administration.
"In just five years, China has gone from a small exporter to the world's largest exporter of automobiles, shipping 6 million vehicles abroad last year at below-market prices that American and allied automakers cannot offer," Moolenaar said. "Through massive subsidies, control over raw materials and supply chains, and a predatory regulatory regime, Beijing has transformed its auto industry into a tool of the state.
He also mentioned national security concerns regarding car imports from China and fears that Beijing could disable cars with Chinese software or components in the event of a major conflict.
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