White House to Shield U.S. Auto Sector from Chinese Market Influx

Top White House economic adviser Lael Brainard will outline the Biden administration’s strategy to protect the U.S. auto industry from China’s trade practices. She will highlight concerns over China flooding global markets with low-cost auto exports and the need for safeguards to avoid a repeat of the early 2000s 'China shock'.

Top White House economic adviser Lael Brainard is set to detail the Biden administration's comprehensive plan to defend the U.S. auto sector against what it deems China's unfair trade practices. According to prepared remarks seen by Reuters, Brainard will underscore China's strategy of inundating global markets with auto exports during its current overcapacity phase.

Brianard will emphasize the administration's resolve to avert a 'second China shock,' by implementing necessary safeguards to prevent low-cost Chinese autos from undermining the competitiveness of the U.S. auto industry. She will point out an analysis showing that the Detroit metro area lost over 55,000 manufacturing jobs to Chinese import competition since 2001.

While only a small number of Chinese cars and trucks are imported into the U.S., the Commerce Department plans to prohibit critical Chinese software and hardware in connected vehicles citing national security concerns—a move that would significantly limit Chinese car entries into the U.S. market. Additionally, recent 100% tariff hikes on Chinese electric vehicles aim to protect U.S.-based industries.

(With inputs from agencies.)