By David Shepardson
WASHINGTON, Dec. 11 – Major automakers on Thursday urged Washington to block Chinese government-backed auto and battery makers from opening manufacturing plants in the United States, warning that the industry’s future is at stake.
The Automotive Innovation Alliance, which represents General Motors, Ford, Toyota Motor, Volkswagen, Hyundai, Stellantis and other major automakers, sounded the alarm and said Congress and the Trump administration needed to act.
“China represents a clear and present threat to the auto industry in the United States,” the group wrote in a statement for a US House of Representatives hearing on Chinese vehicles. The group also said lawmakers should maintain the U.S. Commerce Department’s ban on the import of information and communications technology and services from China, which effectively bans the import of vehicles from Chinese manufacturers.
“No investment by auto and battery manufacturers operating within the US can counter a China that is helped by subsidies to be chronically oversupplied around the world. This is a recipe for dumping that Congress and the Trump Administration must prevent from happening within the US,” the auto industry group said.
Rep. John Moolenaar, a Republican who chairs a House select committee on China, said Congress should sign into law bans on China-connected vehicles that were adopted in the final days of former President Joe Biden’s administration.
“In just five years, China has gone from a minor exporter to the world’s largest auto exporter, shipping 6 million vehicles overseas last year at below-market prices that U.S. and allied automakers can’t match,” Moolenaar said. “With massive subsidies, control over raw materials and supply chains, and a predatory regulatory regime, Beijing has turned its auto industry into a tool of the state.
He also cited national security concerns about vehicles imported from China and concerns that Beijing could disable vehicles with Chinese-made software or components in the event of a major confrontation.
China’s embassy in Washington did not immediately respond to a request for comment.
(Reporting by ‌David Shepardson in WashingtonEditing by Rod Nickel)