US auto industry urges government to prevent Chinese companies from setting up factories in the US to defend national security.

Before the upcoming visit of US President Donald Trump to Beijing, major American automobile trade groups have jointly written a letter to the government requesting to block Chinese car companies from entering the US market and establishing factories. These groups warn that China’s attempt to dominate the global automobile manufacturing industry poses a direct threat to US national security and industrial infrastructure.

According to reports from Reuters, including the Alliance for Automotive Innovation, the National Automobile Dealers Association (NADA), and the American Automotive Policy Council (AAPC), five industry organizations expressed serious concerns about China’s expansion into the automobile market in a letter on Thursday, March 12.

They emphasized the need to not only maintain the cybersecurity regulations established in 2025 to limit the import of Chinese vehicles but also to prevent Chinese companies from setting up factories in the US to evade trade restrictions.

The organizations clearly stated in the letter: “We strongly urge the government to reject attempts by Chinese manufacturers to establish production facilities in the United States to circumvent existing restrictions.”

The letter emphasized: “Whether these vehicles are imported or locally produced, the market distortion and risks posed to the American automotive industry are essentially the same.”

Last December, the Alliance for Automotive Innovation, representing major automakers such as General Motors, Ford, Toyota, Volkswagen, Hyundai, and Stellantis, stated that “China poses a clear and immediate threat to the US automotive industry” and urged Washington to prevent Chinese government-supported automakers and battery manufacturers from setting up manufacturing plants in the US.

As the industry reiterates this demand, it coincides with a critical period in US-China diplomatic relations.

On Sunday, US Treasury Secretary Scott Bessent is expected to begin a two-day trade negotiation with Chinese Vice Premier He Lifeng in Paris. The meeting is seen as a preparatory meeting for Trump’s visit to China on March 31, aiming to stabilize the relationship between the world’s two largest economies.

In a statement, Bessent said, “Under President Trump’s guidance, our team will continue to achieve results, prioritizing the interests of American farmers, workers, and businesses.”

Both sides are expected to discuss whether China will increase purchases of US products such as soybeans and aircraft to alleviate long-standing trade imbalances.

Trump’s upcoming trip to Beijing marks the first visit to China by a US President since 2017. In March 2026, during the APEC summit, leaders of the US and China met in Busan, South Korea, and reached a one-year truce in the trade war. At that time, both sides temporarily imposed retaliatory tariffs, pushing the tariff rates to double-digits.

Businesses and analysts are anticipated to closely monitor the meeting between Bessent and He Lifeng to seek clues about the next steps in US-China relations.