Auto industry urges Trump to not allow Chinese automakers in U.S. ahead of Xi visit

Xi visit: Automakers urge Trump to bar Chinese automakers in U.S. Skip Navigation Markets Business Investing Tech Politics & Policy Video Watchlist Investing Club PRO Livestream Menu Key Points Leaders of six major auto trade groups urged President Donald Trump to maintain policies that "keep the door firmly shut" for Chinese automakers to operate in the U.S. The letter to the president comes ahead of Chinese President Xi Jinping’s visit to Washington, D.C., next week. The leaders argue that allowing Chinese automakers to manufacture in the U.S. would "undermine fair competition and jeopardize the progress" the administration has made in preventing "Chinese dominance in key industries." President Donald Trump greets Vice President of China Han Zheng as SpaceX CEO Elon Musk, U.S. Ambassador to China David Perdue and Nvidia CEO Jensen Huang look on at Beijing Capital International Airport on May 13, 2026. Alex Wong | Getty Images The American automotive industry wants President Donald Trump to maintain policies that make it difficult for Chinese automaker s to operate in the U.S. — or even ban them altogether. In a letter to Trump dated Thursday and viewed by CNBC, groups representing major facets of the U.S. automotive industry — from franchised dealers and suppliers to domestic and foreign automakers — urged the president to "maintain policies that keep the door firmly shut to Chinese automakers seeking to sell, import or manufacture vehicles inside the U.S." "The automotive sector is foundational to our advanced manufacturing and defense base, with the capacity and workforce to respond during a national emergency. Once that base is hollowed out, it can't be rebuilt overnight," the letter reads. The letter comes ahead of Trump's expected visit next week with Chinese President Xi Jinping in Washington, D.C., as well as Trump last week saying he would permit Chinese automakers to move manufacturing to the U.S. "If China wanted to come in and open a plant to build their cars here, I'd be OK with it," Trump said Sept. 11 on Fox News' "The Ingraham Angle." The letter argues that allowing Chinese automakers to manufacture in the U.S. would "undermine fair competition and jeopardize the progress" the administration has made in preventing "Chinese dominance in key industries." Chinese automakers are heavily subsidized by their governments and are rapidly expanding outside of China to other countries. The letter is the latest in a string of messages from the automotive industry to the Trump administration, but this time represented a more unified coalition. It was signed by leaders of six trade associations that represent every major automaker operating in the U.S., including Tesla and foreign automakers, as well as the nation's roughly 17,000 franchised dealers. Choose CNBC as your preferred source on Google and never miss a moment from the most trusted name in business news.