China Building Cars in US: Trump Says He Would Allow Chinese Automakers to Build Plants

US President Donald Trump said he would be open to China building cars in US factories if Chinese automakers decide to set up production plants there. He said the key condition would be that the companies hire American workers rather than use the US only as a sales market.

“If China wanted to come in and set up a plant to build their cars here, I’d be fine with that,” Trump said in a Friday interview. He cited Japan as an example of a foreign manufacturer manufacturing vehicles in the United States while employing local workers.

Trump Says China Building Cars in US Would Be Different From Imports

Trump has made it clear that he does not want Chinese automakers to produce vehicles in Mexico and then sell them in the United States. His remarks show that he views local manufacturing and job growth differently than merely importing Chinese-made autos.

“I’m not knocking Chinese cars,” Trump declared. He has previously taken a strong stance against Chinese vehicles entering the US market, claiming that his government had kept them out.

Trump’s remarks came ahead of a meeting with Chinese President Xi Jinping in Washington in two weeks. US manufacturers have urged the government not to grant Chinese automakers greater access to American consumers.

US Automakers Oppose Wider Access for Chinese Cars

Legislators have already expressed concerns about the matter. Michigan Senator Elissa Slotkin has stated that there are speculations that Trump may allow Chinese cars to be marketed in the United States as part of a larger arrangement with China.

Slotkin saw such a move as a strategic mistake. Trump denied the report, calling it a fake rumor and stating that Chinese vehicles were barred from entering the US market.

A law enacted by former President Joe Biden’s administration in early 2025 virtually prohibited Chinese automakers from selling or producing passenger vehicles in the United States. The United States also retains more than 100% tariffs on Chinese electric automobiles.

The auto industry has continued to advocate for stricter regulations. Last week, a group representing practically all major manufacturers urged Congress to enact legislation that would permanently bar Chinese vehicles from entering the US market.

The alliance includes well-known corporations like General Motors, Ford, Toyota, Volkswagen, Hyundai, Honda, and Stellantis. Its CEO, John Bozzella, said that Chinese automakers are selling significantly subsidized vehicles in markets around the world.

Trump has not yet announced a policy change permitting Chinese passenger vehicles to be marketed in the United States. His most recent comments, however, suggest that he could be prepared to consider Chinese vehicle production in the United States provided it provides jobs for American workers.