Archive · 12 Sep 2026
Trump Open to Chinese Car Plants as Xi Visits India
Donald Trump said Chinese companies could build car factories in the United States.
He said this would be acceptable if the companies hired American workers.
He does not want them to build cars in Mexico and send them to the US.
Chinese vehicles currently face strong restrictions and tariffs in the American market.
Some lawmakers and major car companies want those restrictions to become permanent.
They say Chinese vehicles may receive government subsidies and use connected technology.
Trump denied a report that he was preparing to allow Chinese cars to be sold in the US.
At the same time, Chinese President Xi Jinping is preparing to visit India for a Brics meeting.
Xi is expected to discuss trade, investment and supply chains with Indian Prime Minister Narendra Modi.
Donald Trump said he would accept Chinese automakers building US plants if they employ American workers.
Trump opposed Chinese companies manufacturing vehicles in Mexico for export to the United States.
US tariffs and a Biden-era regulation currently sharply restrict Chinese passenger vehicles and electric cars.
The Alliance for Automotive Innovation and lawmakers are seeking permanent barriers to Chinese vehicle sales.
Chinese President Xi Jinping is preparing to attend the Brics summit in New Delhi and meet Narendra Modi.
- Who
- US President Donald Trump, Chinese President Xi Jinping, Indian Prime Minister Narendra Modi, Chinese automakers, US lawmakers and major automakers.
- What
- Trump expressed conditional support for Chinese automakers building cars in the United States, while Xi prepares to attend the Brics summit.
- When
- Trump made the remarks in a Fox News interview; Xi is expected to visit India, and Trump is expected to meet Xi in Washington in the coming weeks.
- Where
- Potential Chinese factories would be in the United States, while the Brics summit will be held in New Delhi, India.
- Why
- Trump said Chinese companies could operate in the US if they hire American workers; the broader talks concern trade, investment, market access and supply chains.
Conditional Chinese US Manufacturing
Permanent Chinese Vehicle Restrictions
Building cars in the United States
Conditional Chinese US Manufacturing
Trump said Chinese automakers could build vehicles in the United States if they hire American workers, citing Japanese automakers as an example.
Permanent Chinese Vehicle Restrictions
US lawmakers and the Alliance for Automotive Innovation support legislation that would permanently block Chinese vehicles from the US market.
Economic and technology risks
Conditional Chinese US Manufacturing
Producing vehicles in the United States could create American jobs and avoid Chinese vehicles being manufactured in Mexico for export to the US.
Permanent Chinese Vehicle Restrictions
The automotive industry group says Chinese companies export subsidized vehicles with connected software and hardware, which it considers a reason for continued restrictions.
Chinese investment and market access
Conditional Chinese US Manufacturing
Greater manufacturing and investment access could support trade, technology cooperation and supply-chain ties discussed around the Brics summit.
Permanent Chinese Vehicle Restrictions
The United States maintains tariffs and regulatory barriers, while India continues safeguards and scrutiny as it weighs Chinese investment and protects domestic industry.
- Trump's condition
- Trump said Chinese automakers could build cars in the United States if they employ American workers.
- Mexico restriction
- Trump said he did not want Chinese automakers to build vehicles in Mexico and ship them to the United States.
- US electric-vehicle tariffs
- The United States maintains tariffs of more than 100% on Chinese electric vehicles.
- US regulation
- A regulation imposed by the Biden administration in early 2025 effectively prevents Chinese automakers from selling or building passenger vehicles in the United States.
- Industry opposition
- The Alliance for Automotive Innovation has urged Congress to permanently bar Chinese vehicles from the US market.
- Brics summit
- India is hosting the Brics leaders' summit in New Delhi, with trade, investment, payments and supply chains among the issues.
- Expected meetings
- Xi Jinping is expected to meet Narendra Modi in India and Donald Trump in Washington.
