U.S. Commerce Secretary Howard Lutnick has ruled out any possibility of Chinese automakers entering the American market, singling out electric vehicle giant BYD Co. as unwelcome. The stance underscores growing economic tensions between Washington and Beijing ahead of a planned summit between President Donald Trump and Chinese President Xi Jinping.
Speaking at a forum in Washington, Lutnick gave a blunt response when asked whether BYD could establish a joint-venture plant in the United States. “No,” he said, prompting surprise from attendees. In a subsequent interview with Bloomberg News, he reinforced his position, stating that Chinese automakers would not be allowed into the U.S. market—particularly in the auto
Commerce Secretary Howard Lutnick ruled out Chinese investment in the US auto industry, saying there's no need for companies such as electric carmaker BYD Co. in America https://t.co/9I6Jo3lcHQ
— Bloomberg (@business)April 17, 2026
Lutnick's comments align with recent remarks by U.S. Trade Representative Jamieson Greer, who indicated that national security concerns and restrictions on foreign technology would likely keep Chinese carmakers out of the U.S. for the foreseeable future.
The issue comes at a sensitive moment in U.S.-China relations. In March, Greer and Treasury Secretary Scott Bessent met Chinese Vice Premier He Lifeng in Paris to explore the creation of a bilateral trade and investment framework. The talks were intended to lay groundwork for a Trump-Xi summit tentatively scheduled for mid-May.
However, Greer later downplayed expectations for progress, noting that relations between the two countries had not yet reached a stage where deeper investment cooperation was feasible.
Lutnick's position also highlights a potential divergence within the Trump administration. Earlier this year, Trump signaled openness to Chinese automakers building factories in the United States, suggesting such investments could create jobs and boost domestic manufacturing.
Despite that, Lutnick's hard line reflects broader sentiment within the U.S. auto industry. In March, five major industry groups jointly warned the White House that China is seeking to dominate the global auto market, arguing that unrestricted access for Chinese firms could threaten U.S. competitiveness, national security, and industrial capacity.
As the Trump-Xi meeting approaches, it remains unclear whether the issue of Chinese electric vehicle access—particularly involving BYD—will become a focal point of negotiations, or whether the president will ultimately align with the stricter stance taken by his cabinet officials.
