Key Takeaways
- The US could replace the blanket ban on Chinese electric vehicles (EVs) with a phased, conditional approach that allows Chinese automakers to produce in the US, within clear limits, as long as they source substantial US local content, create American jobs, and transfer Chinese technology—in short, provide measurable benefits to the US economy.
- National security risks would have to be managed, including by establishing strict rules on vehicle data privacy, supply chain transparency, oversight of Chinese state subsidies, and protection against data weaponization.
- Past US experience with international industrial competition in color televisions, semiconductors, solar panels, and wind turbines offers practical lessons on designing policies that encourage domestic innovation, job creation, and fair competition.
- Carefully regulated Chinese investment in the US could lower EV prices, accelerate climate goals, and help ease US-China tensions.
Body
In September 2026 President Donald Trump suggested he is open to Chinese automakers building cars in the US. The administration can and should explore ways to ease or remove the barriers to Chinese investment in EVs in the US. China's EV capabilities are formidable, so any policy to allow Chinese EV investment should carefully consider the perceived benefits to the US economy while focusing on guardrails to protect US jobs and national security.
Data Disclosure:
This publication does not include a replication package.
