Trump's openness to Chinese carmakers unsettles Detroit as Asian rivals gain US share

Asian carmakers are outperforming American manufacturers in the United States, and Chinese producers are positioned to enter, The Japan Times reported. The trigger is President Donald Trump, who told the Detroit Economic Club last month that he is comfortable with Chinese cars on American roads provided their makers build plants and hire American workers. "If they want to come in and build a plant and hire you and hire your friends and your neighbours, that's great, I love that," he said, according to The Drive, adding "let China come in, let Japan come in."

The industry's response was immediate. Lobby groups representing manufacturers, parts suppliers and dealers, including the American Auto Policy Council that speaks for the three Detroit companies, asked Trump to maintain strict restrictions on Chinese carmakers seeking to sell, import, or build vehicles in the United States, Malay Mail reported. The same report cited Peter Nagle of Mobility Global, who estimates Chinese makers such as BYD, Geely and SAIC could sell up to 1.7 million vehicles in the United States, about 11% of the market, between now and 2038.

The sequence matters. US producers are already losing share at home to Japanese and Korean rivals, so an opening for Chinese brands would arrive while Detroit's competitive position is weakening rather than strengthening.