(Washington, 19th) US Commerce Secretary Gina Raimondo made it clear that Chinese capital will not be allowed to enter the American automotive industry, stating bluntly that the US does not need BYD and other Chinese electric vehicle companies.
On Friday (April 17), at a dialogue event in Washington, Raimondo was asked whether she would consider allowing BYD to set up a joint-venture factory in the US and replied directly with a single word, “No,” eliciting laughter from the audience.
She later clarified on the sidelines of the same event, pointing out that the moderator’s question had specifically mentioned BYD. She told Bloomberg: “We are not going to let them in.” When pressed on whether other Chinese companies would have the opportunity to invest in the US, Raimondo emphasized: “Not in the auto industry.”
Last month, a group of US auto manufacturers jointly sent a letter to the government, asserting that Beijing is attempting to dominate the global automotive industry and enter the US market, which poses a direct threat to America's global competitiveness, national security, and automotive industrial base.
At the mid-March US-China trade talks in Paris, US Trade Representative Katherine Tai and Treasury Secretary Janet Yellen agreed with Chinese Vice Premier He Lifeng to explore establishing mechanisms to promote bilateral trade and investment cooperation. However, in early April, Tai downplayed the possibility of expanding bilateral investment cooperation, saying, “I don’t think the current US-China relationship has developed to the point where we can discuss a two-way investment plan.” Last week, she added that due to US restrictions on foreign technology, it is very likely that Chinese car companies will continue to be excluded from the US market for the foreseeable future.
According to informed sources, the Trump administration is considering adjustments to North American trade rules—potentially raising tariffs on imported cars—to encourage manufacturers to increase production in the US.
The sources say that the rules under discussion in the US include requiring imported cars to contain a certain percentage of US-made components and limiting the ability of car makers to benefit from tariff reductions under the US-Mexico-Canada Agreement (USMCA), thereby increasing the cost of transporting finished vehicles across borders. However, these ideas are still in the early stages, with specific operational methods yet to be formed.
Sources also revealed that before evaluating the USMCA, US officials have already had internal discussions, as well as talks with individuals related to the automotive industry, about these potential adjustments, but have not yet formalized any proposals to Canadian or Mexican trade officials.
Washington is disappointed that current trade policies have failed to bring back large-scale production of cars and parts to the US. Last year, the Trump administration launched a series of tariff measures to drive automakers to increase production capacity in the US, including imposing a 25% tariff on imported cars and parts.
Although many car companies have pledged billions of dollars in new investments and announced plans to shift some manufacturing from Canada, Mexico, and Japan to the US, the overall investment scale in the US auto industry has not increased significantly. The US still relies heavily on imports to meet domestic demand, especially for cars priced at $30,000 or below.
She later clarified on the sidelines of the same event, pointing out that the moderator’s question had specifically mentioned BYD. She told Bloomberg: “We are not going to let them in.” When pressed on whether other Chinese companies would have the opportunity to invest in the US, Raimondo emphasized: “Not in the auto industry.”
Last month, a group of US auto manufacturers jointly sent a letter to the government, asserting that Beijing is attempting to dominate the global automotive industry and enter the US market, which poses a direct threat to America's global competitiveness, national security, and automotive industrial base.
At the mid-March US-China trade talks in Paris, US Trade Representative Katherine Tai and Treasury Secretary Janet Yellen agreed with Chinese Vice Premier He Lifeng to explore establishing mechanisms to promote bilateral trade and investment cooperation. However, in early April, Tai downplayed the possibility of expanding bilateral investment cooperation, saying, “I don’t think the current US-China relationship has developed to the point where we can discuss a two-way investment plan.” Last week, she added that due to US restrictions on foreign technology, it is very likely that Chinese car companies will continue to be excluded from the US market for the foreseeable future.
According to informed sources, the Trump administration is considering adjustments to North American trade rules—potentially raising tariffs on imported cars—to encourage manufacturers to increase production in the US.
The sources say that the rules under discussion in the US include requiring imported cars to contain a certain percentage of US-made components and limiting the ability of car makers to benefit from tariff reductions under the US-Mexico-Canada Agreement (USMCA), thereby increasing the cost of transporting finished vehicles across borders. However, these ideas are still in the early stages, with specific operational methods yet to be formed.
Sources also revealed that before evaluating the USMCA, US officials have already had internal discussions, as well as talks with individuals related to the automotive industry, about these potential adjustments, but have not yet formalized any proposals to Canadian or Mexican trade officials.
Washington is disappointed that current trade policies have failed to bring back large-scale production of cars and parts to the US. Last year, the Trump administration launched a series of tariff measures to drive automakers to increase production capacity in the US, including imposing a 25% tariff on imported cars and parts.
Although many car companies have pledged billions of dollars in new investments and announced plans to shift some manufacturing from Canada, Mexico, and Japan to the US, the overall investment scale in the US auto industry has not increased significantly. The US still relies heavily on imports to meet domestic demand, especially for cars priced at $30,000 or below.