U.S. President Donald Trump has signaled that he could allow Chinese companies to build and operate vehicle assembly plants in the United States, a step blocked under the previous administration of Joe Biden.
Trump said in an interview with Fox News that it would be acceptable if China wanted to come into the United States and build plants to produce cars there, Reuters reported on the 11th.
He added that Japan employs Americans in the same way and that hiring U.S. workers is the most important consideration, setting job creation in the United States as a precondition.
He drew a line, however, at allowing Chinese automakers to set up production bases in Mexico and export vehicles to the United States from there.
The remarks are drawing added attention because they came about 10 days before a summit with Chinese President Xi Jinping in Washington.
Under Biden-era rules, Chinese companies are effectively barred from producing and selling passenger vehicles in the United States, and Chinese-made electric vehicles face tariffs of more than 100%.
U.S. automakers have strongly opposed any entry by Chinese companies. The Alliance for Automotive Innovation, an industry group, last week urged Congress to swiftly pass legislation this year that would permanently block Chinese vehicles from the U.S. market.
In a letter, the alliance argued that the U.S. auto industry faces a serious threat because China's auto sector grew on the back of unfair trade practices, subsidies and intellectual property theft.
