US Trade Chief Says Tech Restrictions to Block Chinese Carmakers

The top US trade official said restrictions on foreign technology will likely keep Chinese carmakers out of the US for the foreseeable future, throwing cold water on the prospect of those manufacturers establishing a foothold in the domestic auto market.

Rules prohibiting connected vehicle technology and software made by so-called foreign entities of concern pose a steep barrier for many Chinese companies, US Trade Representative Jamieson Greer told reporters Thursday. Those rules are taking effect over the 12 to 18 months, he said.

“We don’t see any change in that,” Greer said during a tour of a Stellantis NV plant in Michigan. “It would probably be difficult for certain countries to establish new production here, given those sets of rules.”

The prospect of Chinese carmakers entering the US market has become a closely watched topic for the domestic auto industry this year, particularly after President Donald Trump indicated in January that he would be open to arrangements that employed American workers. That would be a watershed moment with major implications for US manufacturers and consumers.

Led by the likes of BYD Co. and Geely Automobile Holdings Ltd., China’s automakers have rapidly gained market share in Europe, Mexico and South America with lower-cost models that feature advanced electric-vehicle batteries and infotainment systems. They also receive government subsidies and can offer technology at low prices in part because they tolerate slim margins or even losses, giving them a competitive edge that western rivals struggle to match.

Canada’s government recently agreed to allow 49,000 Chinese vehicles into the country each year.