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US lawmakers warn Trump on Chinese EV push

Washington, May 7 (IANS) More than 50 Republican lawmakers have urged the Trump administration to block Chinese automotive and battery companies from manufacturing in the United States, arguing that such a move would threaten American jobs, supply chains and national security.

In a letter led by Representatives Mike Kelly and Gus Bilirakis, the lawmakers asked Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick and US Trade Representative Jamieson Greer to reject any effort by Chinese firms to establish vehicle and battery manufacturing facilities in the US or wider North American market.

The letter comes ahead of an expected meeting between President Donald Trump and Chinese President Xi Jinping on trade issues.

“We must be clear-eyed about China’s goals in expanding its automotive footprint across the globe. China’s intent is not fair competition, as evident by their actions in other critical sectors,” the lawmakers wrote.

The lawmakers said the US automotive industry contributes more than 5 per cent of the country’s GDP and supports millions of manufacturing jobs. They warned that heavily subsidised Chinese companies could use “non-market tactics” to gain control over global automotive supply chains.

“If Chinese automotive companies were granted access to manufacture and sell vehicles and batteries in the US, we risk decimating US manufacturing, eroding global market share for US auto companies, and leaving consumers and businesses exposed to serious cybersecurity and surveillance threats,” the letter said.

The lawmakers accused China of artificially inflating production through government subsidies and pushing companies to export vehicles at below-market prices.

“China’s goal is not to compete in the U.S. automotive market, but instead to hollow it out and ultimately limit consumer choice to Chinese brands,” they wrote.

The letter also raised concerns over data security and connected vehicle technology. According to the lawmakers, Chinese-made vehicles could collect and transmit sensitive information from US citizens and infrastructure.

“Furthermore, the technology in today’s vehicles could allow for remote access and potentially give Chinese actors control of these vehicles operating on American roads,” the lawmakers said.

The group urged the administration to maintain existing restrictions, including the Commerce Department’s connected vehicle rule and Section 301 tariffs on Chinese electric vehicles.

The lawmakers also linked the issue to the upcoming review of the United States-Mexico-Canada Agreement (USMCA). They said Chinese state-owned enterprises were attempting to exploit North American trade frameworks to bypass US economic security measures.

“Establishing a formal foreign investment screening mechanism would help close this backdoor, protect the agreement’s integrity, and prevent further erosion of the US manufacturing base,” the letter said.

The letter was signed by more than 50 House Republicans, including lawmakers from Michigan, Ohio, Pennsylvania, Texas and Florida — states with strong automotive or manufacturing interests.

Chinese electric vehicle makers have rapidly expanded exports in recent years, supported by large-scale state subsidies and aggressive overseas investment. The rise of Chinese EV companies has triggered trade and security debates in the US and Europe, with governments increasingly scrutinising supply chains tied to batteries, semiconductors and connected vehicle technologies.

–IANS

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