US Rep. Debbie Dingell and 26 fellow House members have urged President Donald Trump to maintain restrictions protecting the American automotive industry from Chinese vehicles and connected vehicle technologies.
In a letter to Trump on Monday, the lawmakers called on the administration not to open the US market to Chinese automobile imports or manufacturing as part of ongoing US-China trade discussions.
“We urge you to maintain strong protections against Chinese automobiles and connected vehicle technologies and ensure that China does not gain access to our market through direct imports, local production, and other avenues of circumvention,” they wrote.
Concerns over Chinese state support
The lawmakers said China’s use of “massive” government subsidies, state-directed investment, below-market financing and other policies gives Chinese automakers an advantage in international markets.
They argued that these measures have contributed to “significant” excess production capacity among Chinese manufacturers and supported their expansion into overseas markets through corporate partnerships and other business arrangements.
Warning over competition and labour practices
“These subsidized Chinese automakers sell vehicles globally at unfair, artificially low prices that American manufacturers simply cannot compete with,” the lawmakers said, according to the letter.
They also alleged that Chinese automotive manufacturing relies on forced labor and other exploitative labor practices, in addition to government financing.