Trump publicly announced: Chinese car companies are welcome to build factories and sell cars in the United States, but he does not approve the docking of finished cars.

Abstract:

In recent public interviews, Trump specifically addressed Chinese auto companies, clearly sending a signal that Chinese auto companies are welcome to invest and build factories in the United States.

On September 11, local time, Trump gave specific instructions when he was a guest on the Fox News program to discuss policies related to the automobile industry. He said that as long as Chinese car companies are willing to set up vehicle production bases in the United States and hire local American workers to participate in full-process manufacturing, he fully welcomes such investments.

In the early years, Japanese car companies entered the U.S. market using this model of building local factories to absorb local labor, and ultimately achieved two-way benefits for the market and employment.

At the same time, Trump has also clearly drawn his own policy red line. He completely disapproves of the arbitrage model in which car companies take advantage of Mexico's low-cost advantage to complete vehicle manufacturing and then directly ship the finished vehicles to the United States for sale. He bluntly stated that this kind of situation that exploits loopholes in trade rules will never be allowed again.

Trump also mentioned that many car companies are currently withdrawing from their original production bases in Canada and Mexico, and gradually moving their entire production lines to the United States. This trend of reshoring production capacity will further accelerate in the future, eventually creating a considerable number of automobile manufacturing jobs in the United States.

The welcome policy proposed by Trump this time essentially comes with extremely high threshold requirements, which is equivalent to requiring Chinese car companies to keep all core manufacturing and profit links in the United States, and give up the existing advantages of relying on low-cost bases to export to the U.S. market. Behind the seemingly open attitude, there is actually a clear desire to use the technology of foreign car companies to stimulate local employment.