U.S. Rep. Mike Kelly (R-PA) recently led 52 of his Republican colleagues in urging the Trump administration against making any trade decisions that would allow Chinese automotive and battery companies to manufacture their products in the United States.
“The U.S. auto industry is reaching a critical inflection point, as global dynamics and shifts in policy create opportunities for heavily subsidized Chinese automakers to gain momentum using non-market tactics,” wrote Rep. Kelly and the lawmakers in an April 30 letter sent to U.S. Treasury Secretary Scott Bessent, U.S. Commerce Secretary Howard Lutnick, and U.S. Trade Ambassador Jamieson Greer.
“If Chinese automotive companies were granted access to manufacture and sell vehicles and batteries in the U.S., we risk decimating U.S. manufacturing, eroding global market share for U.S. auto companies, and leaving consumers and businesses exposed to serious cybersecurity and surveillance threats,” they wrote. “This is not a winning strategy.”
In their letter, which was sent in advance of President Trump’s meeting with Chinese President Xi Jinping on trade matters between the U.S. and China, the members pointed out that Chinese automotive companies have recently accelerated investment in North America and flooded global markets with the long-term goal of dominating market share and controlling automotive manufacturing and supply chains globally.
Chinese automakers are also heavily subsidized by the Chinese government, creating an unlevel playing field for American automakers, according to their letter.
“We must be clear-eyed about China’s goals in expanding their automotive footprint across the globe. China’s intent is not fair competition, as evident by their actions in other critical sectors,” the members wrote. “They have drastically inflated supply in their domestic auto market through unfair government subsidies and other benefits intended to artificially prop up companies, forcing them to export and expand to foreign markets at below-market prices.
“China’s goal is not to compete in the U.S. automotive market, but instead to hollow it out and ultimately limit consumer choice to Chinese brands,” they added. “Allowing Chinese automotive and battery companies to manufacture in the U.S. would jeopardize our national security.”
As negotiations with China continue to develop, wrote the members, they urged the administration to reject any attempts by China to establish vehicle and battery manufacturing facilities stateside or in the broader North American market.
Among the lawmakers who joined Rep. Kelly in signing the letter were U.S. Reps. Carol Miller (R-WV), Michael Rulli (R-OH), Troy Balderson (R-OH), Bob Latta (R-OH), John Joyce (R-PA), Brian Fitzpatrick (R-PA), Kat Cammack (R-FL), Ron Estes (R-KS), Andy Barr (R-KY), John Moolenaar (R-MI), Vern Buchanan (R-FL), Ashley Hinson (R-IA), Erin Houchin (R-IN), Buddy Carter (R-GA), Bill Huizenga (R-MI), Darin LaHood (R-IL), Laurel Lee (R-FL), Blake Moore (R-UT), Kevin Hern (R-OK), Pete Stauber (R-MN), Mike Carey (R-OH), and Rudy Yakym (R-IN).