U.S. Strategy to Shield Auto Industry from Chinese Trade Practices Unveiled

Top White House economic adviser Lael Brainard will outline the Biden administration's strategy to protect the U.S. auto sector from China's alleged unfair trade actions. The plan aims to prevent a repeat of the early 2000s China shock that negatively impacted American manufacturing.

Top White House economic adviser Lael Brainard plans to outline on Monday the Biden administration's approach to protecting the U.S. auto sector from China's alleged unfair trade practices. Brainard is set to present these views at the Detroit Economic Club, according to prepared remarks.

China is reportedly flooding global markets with an oversupply of auto exports, a strategy the administration believes could undermine the American auto industry's competitiveness. Similar tactics were seen during the China shock of the early 2000s, which had a detrimental impact on manufacturing communities in the U.S.

"The administration is determined to avoid a second China shock," Brainard will state, "which means putting safeguards in place before a flood of underpriced Chinese autos undercuts the ability of the U.S. auto sector to compete on the global stage."

(With inputs from agencies.)