Automakers raise concerns about Chinese vehicles entering the U.S.

It would be devastating on the American economy if Chinese vehicles are allowed into the country, Ford CEO Jim Farley recently said on Fox News’ Fox & Friends. 

Farley said more than 100 Chinese automakers have direct support from their government. He said they are manufacturing cars for more than 50 million customers, when their local need is 29 million. 

“They have enough capacity in China to cover all the manufacturing and all of the vehicle sales in the United States,” Farley said. “We should not let them into our company. Manufacturing is the heart and soul of our country, and for us to lose that to those exports would be devastating to our country.”

Chinese-exported vehicles also come with cybersecurity and privacy risks, he said. 

The U.S. Department of Commerce’s Bureau of Industry and Security (BIS) finalized a rule last year that bans Chinese and Russian connected vehicle technology in the U.S., noting the technology as a security risk. 

“Cars today aren’t just steel on wheels — they’re computers. They have cameras, microphones, GPS tracking, and other technologies that are connected to the internet. Through this rule, the Commerce Department is taking a necessary step to safeguard U.S. national security and protect Americans’ privacy by keeping foreign adversaries from manipulating these technologies to access sensitive or personal information,” said U.S. Secretary of Commerce Gina Raimondo in a press release when the rule was finalized. “This is a targeted approach to ensure we keep PRC and Russian-manufactured technologies off American roads and protect our nation’s connected vehicle supply chains.” 

Farley said Ford has to do its part to compete with Chinese automakers, and he feels the company is doing this with a recent push to make EVs more affordable. 

John Bozzella, CEO of the Alliance for Automotive Innovation (Auto Innovators), also discussed concerns regarding Chinese automakers in an opinion piece published by Automotive News last month. 

He called a recently passed law in Washington that allows electric vehicle manufacturers to sell directly to consumers a “legal roadmap for Chinese automakers to one day enter the U.S. market by bypassing dealers.” 

“It’s no secret China has a plan to dominate global automaking and dismantle American automotive leadership,” Bozzella writes in the piece. “They build too many government-subsidized vehicles and have flooded Europe, Mexico, and South America to offload product at cut-rate prices.” 

Bozzella writes that state laws requiring manufacturers to sell through the franchise are one roadblock that keeps China from selling in the U.S. He adds that tariffs and national security bans on Chinese technology are also a hindrance for the companies. 

No one can be certain that tariffs and national security rules will remain permanent. 

“That leaves state dealer franchise laws as a protective measure against Chinese automakers in the U.S.,” Bozzella writes. “That is, unless other states follow Washington’s lead or the courts inevitably get involved. That’ll blow a hole in the franchise system big enough for a fleet of Chinese vehicles to drive down our streets one day.

“The solution is hiding in plain sight. One set of retail rules that require all manufacturers to sell through franchised dealers, whether they entered the market 100 years ago or five years ago, and no matter what kind of powertrain they produce.”

Bozzella discussed the opinion piece further during an episode of “More than Cars.” 

“These are not companies based in the U.S. competing with companies based in China,” Bozzella said. “This is companies in the U.S. competing with China, the nation. China that is engaged in anti-competitive unfair economic behavior.”

He said automakers have asked the current presidential administration to tread carefully before considering allowing any Chinese manufacturers into the country. 

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BYD display at Automechanika Frankfurt

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