Trump’s China visit could have big implications on US auto industry, global events

President Trump arrived in Beijing, China, on an official state visit that could have far-reaching implications for global technology and trade, as American automakers watch closely for any shift in how the U.S. approaches China’s growing auto industry.

Trump arrived to fanfare and brought a group of prominent tech executives with him. The business leaders included Nvidia CEO Jenson Huang, the leader of what is considered the world’s most valuable company. Tesla CEO Elon Musk also made the trip on Air Force One. Outgoing Apple CEO Tim Cook is also in Beijing.

“This is going to be a very exciting trip. A lot of good things are going to happen,” Trump said Tuesday ahead of leaving for China.

Trump and Chinese President Xi Jinping are expected to address trade and competition over artificial intelligence, with the tech leaders in attendance. The meeting comes as domestic automakers remain wary of Chinese electric vehicles entering the U.S. market.

The United States has used tariffs and national security concerns to shield itself from Chinese electric vehicles flooding the market. The vehicles often come with advanced features at an affordable price, but Trump earlier this year signaled openness to a deal that could allow Chinese manufacturing in the U.S.

“If they want to come in and build the plant and hire you and hire your friends and your neighbors, that’s great. I love that. Let China come in, let Japan come in,” Trump said in January while speaking to the Detroit Economic Club.

Ahead of Trump’s trip, bills were introduced in Congress that would ban Chinese “connected vehicles” — cars that have internet access — from being sold in the United States. The proposed restrictions would also cover software and parts, amid concerns personal data could be funneled to Beijing.

Protecting the American market has bipartisan support, though some lawmakers still back allowing China to build vehicles in the U.S. using American labor.

“Spurring industry at home is the best way to compete with cheaper electric vehicles from China. And no, they should not come here, but at the same time we have to build them here,” said Rep. Kim Schrier, D-Washington, advocating for advancing domestic production.

“China, if you want to bring Chinese products to the United States, come open up plants in the United States. We have states that would welcome you with open arms,” said Rep. Jimmy Patronis, R-Florida, who said he thought the President was striking the right balance when he offered up having foreign companies open plants in America.

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