FORMER US president Donald Trump has reiterated an openness for Chinese automakers to build cars in the US as a way to boost the economy, signalling a potentially different approach from a Biden administration that has sought to keep out vehicles with links to the country.
“Right now as we speak, large factories are being built across the border in Mexico” by China to make cars to sell in the US, Trump said in an address at the Republican National Convention in Milwaukee on Thursday (Jul 18). “Those plants are going to be built in the US and our people are going to man those plants,” he said, adding that he would otherwise slap tariffs as high as 200 per cent on each car to prevent them from entering the country.
The comments are similar to remarks he made in March at an Ohio rally welcoming Chinese car companies to build plants in the US, without naming any firms. China’s largest electric vehicle maker, BYD, is looking to set up one of the biggest car factories in Mexico.
Both Trump and President Joe Biden seek to keep made-in-China cars from entering the US to protect domestic manufacturers. But the Republican candidate appears to take a more transactional approach when it comes to Chinese companies building cars in the US.
Biden, in contrast, has broadly scrutinised vehicles with links to China, including potentially those made outside the country. The Biden administration has tried to exclude firms at least 25-per-cent-owned by a Chinese government entity from benefiting from tax credits. It has also launched an investigation into cars with software made in China that could compromise the data and safety of US citizens.
Both men want to look tough on Beijing as they head towards a potential election rematch in November. Trump referred to Covid-19 as the “China virus” during the rally, to roaring applause from the audience, as he recalled his trade negotiations with the Chinese government during his stint in the White House.
Trump also vowed to end an “electric vehicle mandate” if he takes office. While the Biden administration has no such mandate, critics of new air-pollution limits issued by the Environmental Protection Agency have said such measures would illegally force carmakers to sell electric vehicles. BLOOMBERG
