Chinese automakers may be allowed to build factories in the US and produce cars directly for the American market. The key condition is that production must be located in the country and create jobs for local employees. This was stated by US President Donald Trump in an interview with Fox News on September 11.
For the automotive industry, this is a fundamental difference between importing finished cars and local production. Chinese brands will be able to produce cars on American territory, but current restrictions on the supply of Chinese cars and related technologies remain in effect. Imports of Chinese electric vehicles into the US are subject to tariffs of over 100%.
Local assembly will also allow manufacturers to reduce logistics costs and adapt vehicles to American requirements. For Chinese companies, this is especially important given their active expansion into foreign markets: their own factory in the US would provide an opportunity to operate directly within the largest automotive market.
So far, no specific Chinese company has announced the construction of such a facility. American automakers, on the other hand, oppose the free entry of Chinese cars and are seeking permanent legislative restrictions on their market presence.
This is not yet about the imminent appearance of BYD or Geely in American car dealerships, but about a possible operating model: a Chinese company builds a factory in the US, hires local employees, and produces cars within the country. For the market, this potentially means a new wave of competition in terms of price and technology.