Trump open to Chinese automakers building factories in US

US President Donald Trump said he would be open to allowing Chinese automakers to build factories and produce vehicles in the United States, despite strong opposition from the American auto industry.

In a Fox News interview Friday (local time), Trump said, "If China wants to come in and open up a factory in the United States and build cars, I'm okay with that," according to Yonhap, citing a Reuters report.

He conditioned the openness on job creation, adding, "Japan does that and they hire our people. The most important thing is that they hire our people."

However, Trump made clear he would not tolerate Chinese automakers building factories in Mexico and exporting finished vehicles into the US market. "I'm not criticizing Chinese cars per se," he said, drawing a distinction between domestic production and third-country manufacturing.

The remarks came roughly 10 days before a scheduled summit with Chinese President Xi Jinping in Washington, drawing considerable attention.

US automakers have repeatedly urged Trump not to allow Chinese auto companies access to the American market.

The US market currently operates under regulations introduced by the Joe Biden administration that in effect ban Chinese automakers from producing and selling passenger cars in the country. The US government also imposes tariffs of more than 100 percent on Chinese electric vehicles.

The Alliance for Automotive Innovation, a US auto industry trade group, last week urged Congress to swiftly pass legislation this year that would permanently block Chinese automakers from entering the US market.

In a letter, the AAI said China's auto industry is rooted in unfair trade practices, subsidies and intellectual property theft, and warned that the American auto industry faces serious threats.

Rep. Elissa Slotkin (D-Michigan) said Wednesday that "rumors are circulating that President Trump is considering allowing Chinese-made cars to be sold in the US as part of negotiations with China," calling it "a strategic mistake."

Trump pushed back, calling the rumors "totally false" and saying he had blocked Chinese cars from entering the US market all along.