US auto groups oppose possible BYD market opening during Trump–Xi visit

US industry and senator press case against BYD entry

Pressure on President Donald Trump over a possible US opening for Chinese carmaker BYD intensified during President Xi Jinping’s September visit to Washington. A coalition of US automotive groups sent Trump a letter opposing Chinese carmakers’ entry, while Michigan Senator Elissa Slotkin issued a separate warning about the prospect of a BYD assembly plant. The Washington Examiner reported that Xi arrived on 23 September for a three-day visit. The objections concerned a possible policy change, not an announced BYD plant or an agreed deal. ⁴¹⁵

The 17 September letter, reported by Bloomberg News through Transport Topics, was signed by groups representing carmakers, suppliers and dealers. They included the Alliance for Automotive Innovation, Autos Drive America, the American Automotive Policy Council and the National Automobile Dealers Association. The coalition argued that existing barriers protect US manufacturers from subsidised Chinese competition and risks associated with connected-vehicle technology. It opposed allowing a Chinese carmaker to establish a domestic production foothold. ⁴

Automotive News reported in a 23 September post that Slotkin had warned in a social-media video the previous day against allowing BYD into the US market in exchange for building an assembly plant. She argued that local assembly could be a first step towards sales of vehicles made in China. That was the senator’s concern about a potential outcome, rather than evidence that such an arrangement had been negotiated. ¹

Delegation reports stopped short of a plant proposal

Before the visit, Automotive World reported, citing Reuters, that BYD was among companies under consideration for a Chinese business delegation. Xiaomi and battery makers CATL and Gotion were also named as candidates. Bloomberg’s account in Transport Topics likewise said BYD’s inclusion was being considered and that the list could change. Neither report established that BYD chairman Wang Chuanfu ultimately joined the delegation, or identified a formal proposal to build BYD passenger cars in the US. ³⁴

The Washington Examiner reported during the visit that the White House had declined to specify its expected announcements or the topics Trump would prioritise in talks with Xi. Former American Chamber of Commerce in Shanghai chairman Ker Gibbs told the publication he was watching for discussion of a possible BYD arrangement. His comments were an assessment of what might be discussed, not confirmation of negotiations or an agreement. ⁵

Trump’s comments helped bring the issue into focus. Bloomberg reported that he had expressed willingness to see a Chinese manufacturer build electric vehicles in the US using American workers; Automotive World also reported his support for Chinese-owned plants on that condition. A statement of openness to investment does not, by itself, change the rules governing which vehicles can be sold. ⁴³

Tariffs and vehicle rules remain barriers

Automotive World reported that a 100 per cent US tariff on Chinese electric vehicles remained in place. It also said a rule covering China-linked connected vehicles would bar sales of new affected vehicles from model year 2027, including vehicles built domestically. Bloomberg described tariffs and connected-vehicle restrictions as the principal reasons Chinese passenger vehicles were largely shut out of the US market. A US factory would therefore not, on its own, resolve the connected-vehicle obstacle. ³⁴

Bloomberg reported that BYD already operates an electric-bus manufacturing facility in California. That existing operation is distinct from the passenger-car assembly plant at issue in the current dispute. Bloomberg also reported that the Pentagon had listed BYD over alleged links to China’s military, an allegation BYD denies; Automotive World dated that listing to June 2026. ⁴³

The coalition is seeking restrictions beyond those already in force. Bloomberg reported that carmakers want Congress to make a ban on Chinese cars and connected-vehicle technology permanent, and that several bills were under consideration. A proposal before lawmakers is separate from both an enacted restriction and any decision arising from the Trump–Xi visit. ⁴

An established supply-chain presence

The debate over Chinese-branded passenger cars sits alongside an existing Chinese presence in US vehicle supply chains. CNBC reported figures from consultancy AlixPartners showing that Chinese companies owned more than 60 US-based automotive suppliers and held stakes in about five per cent of roughly 10,000 US auto suppliers. Those figures describe component businesses and investments, not retail sales by Chinese car brands. ²

CNBC also reported Chinese-sourced parts in vehicles sold under established US-market brands, illustrating why restrictions on complete vehicles and connected systems are not the same as a ban on every Chinese-made component. The September industry letter, as reported by Bloomberg, nevertheless focused on preventing Chinese carmakers from gaining a new US-market foothold. The reported political pressure and delegation discussions have not established a change to the rules or a BYD passenger-car plant agreement. ²⁴