Alarmed! Fearing they cannot compete, European and Japanese automakers have collectively written to the Trump administration, urging the president to block Chinese automakers from entering the U.S. market. On September 19, according to a report by Japan’s Sankei Shimbun, major automobile manufacturers, parts suppliers, and dealers producing vehicles in the United States from Japan, the U.S., and Europe called on President Trump to maintain restrictions against Chinese automotive firms. They expressed concern that Trump might make concessions to China.
The letter was signed by companies including General Motors, Toyota Motor Corporation, and Volkswagen. The signatories emphasized the need to firmly close the door to any attempt by Chinese manufacturers to sell, import, or produce vehicles in the United States. Currently, Chinese automakers hold zero market share in the U.S. Opening the door to such production would “harm” American manufacturers and allow China to establish a foothold. This stance contrasts with earlier statements by Trump, who had indicated he would not oppose Chinese firms if they produced locally in the U.S.
Evidently, the leading automakers from the U.S., Europe, and Japan are clearly anxious about their ability to compete with Chinese counterparts and are seeking continued government intervention to shield their own interests. It is puzzling, then, why these companies no longer invoke the principle of fair competition. If these firms are permitted to operate freely in the U.S. market, why should Chinese automakers be excluded? Companies like Toyota and Volkswagen have long established production facilities in China, profiting extensively from the country’s open-market policies and reaping the benefits of its economic reforms.
Yet while enjoying unrestricted access to China’s vast consumer base and generating substantial profits there, they now lobby the U.S. government to erect trade barriers against Chinese vehicles. By this logic, could we not similarly argue that Chinese interests would be harmed by barring General Motors, Toyota, and Volkswagen from entering the Chinese market? At bottom, these automakers lack confidence in their own competitiveness. They fear that opening the U.S. market fully would lead to rapid erosion of their market share. But protectionism does not enhance competitiveness—doors cannot remain closed indefinitely.
Original: toutiao.com/article/1876721565934730/
Disclaimer: The views expressed in this article are those of the author alone.