Former US President Donald Trump has declared openness for Chinese carmakers to produce cars in the US, unlike the Biden administration, which is keen to keep them out of the country, Bloomberg reports.
Trump said in an address at the Republican National Convention in Milwaukee on Thursday:
Right now as we speak, large factories just are being built across the border in Mexico by China to make cars to sell in the US. Those plants are going to be built in the United States and our people are going to man those plants.
He also added that he would otherwise slap tariffs as high as 200% on each car to prevent them from entering the country.
The comments are similar to ones he made in March at a rally in Ohio, welcoming Chinese car companies to build plants in the US without naming any firms. China’s largest electric car maker BYD Co. is set to open one of its largest auto plants in Mexico.
Both Trump and Biden are keen to keep Chinese-made cars out of the US to protect domestic manufacturers. But the Republican candidate seems to be taking a more transactional approach when it comes to Chinese companies building cars in the United States.
Biden, by contrast, has extensively scrutinised vehicles linked to China, including those potentially manufactured outside the country. The Biden administration has sought to rule out the possibility of firms at least 25 percent owned by Chinese state entities receiving tax breaks. It has also launched an investigation into cars with software made in China that could jeopardise the data and security of US citizens.
Both men want to appear tough on Beijing as they approach a potential rematch in November’s election. During the rally, Trump called COVID-19 a “Chinese virus” to wild applause from the audience, recalling trade talks with the Chinese government while in the White House.
Trump also vowed to repeal the “electric car mandate” on day one if he takes office. While the Biden administration has no such mandate, critics of new air pollution limits issued by the Environmental Protection Agency said they would illegally force automakers to sell electric cars.
