President Donald Trump seemed to shift his stance on Chinese involvement in the American auto industry during a recent interview with Laura Ingraham from Fox News. On September 11, he mentioned, “If China wanted to come in and open a plant to build their cars here, I’d be okay with that.”
But is this truly a shift in his viewpoint, or could it be more about how the President is negotiating ahead of his upcoming meeting with Chinese leader Xi Jinping on September 24? It’s all about the context. Trump clarified his remarks by stating that he would consider allowing Chinese auto manufacturing in the U.S. only if those companies commit to hiring American workers.
“Japan does it, but they hire our people. The big thing is they hire our people,” he noted.
This isn’t entirely new; Japan, Korea, Germany, and companies like Volvo have all engaged in this practice. So, if China is let into the U.S. market, it wouldn’t be completely out of line with how it has worked for decades.
Still, it begs the question: Are these comments a genuine reversal of his stance? It seems the answer leans toward “not really.”
Looking back at Trump’s speech at the 2024 GOP National Convention, he spent more time discussing energy than any president before him. He talked extensively—about 1,000 words—on energy topics, including concerns about China’s plans to flood the U.S. with low-cost electric vehicles.
He specifically criticized Chinese firms like BYD for their strategies to import EVs into the U.S., whether from China or Mexican plants, while also scolding the United Auto Workers (UAW) for their support of the Democrats amid this issue.
Interestingly, during those remarks, he never voiced any objections to allowing Chinese companies to invest in manufacturing facilities in the U.S. that would employ American workers. I couldn’t find any prior comments or speeches where he expressed anything similar since announcing his candidacy in 2015.
This context is crucial since Xi Jinping will be in Washington, D.C. next week with a group of Chinese business leaders, including representatives from carmakers. While these executives haven’t publicly stated their delegation’s goals, it’s hard to believe this trip is merely for sightseeing.
Trump’s readiness to entertain a conditional entry for China into the U.S. auto market is quite notable, especially amid the ongoing buzz over the booming AI sector and the broader U.S./China competition. However, it appears that Trump views the auto industry as a potential area for a deal with Xi, which likely won’t help his strained relations with the UAW.
