US Lawmakers Press Biden Admin on Chinese Vehicle Influx

Nine Democratic lawmakers have urged President Biden's administration to take decisive measures to curb the influx of Chinese vehicles into the United States market. 

In a letter addressed to US Trade Representative Katherine Tai and Secretary of Commerce Gina Raimondo, they advocate for heightened tariffs and expedited reviews of existing Section 301 tariffs on Chinese products. The legislators emphasized the importance of protecting domestic car manufacturing, preserving American jobs, and safeguarding national security interests.

"These measures are essential to safeguarding national car manufacturing, protecting American jobs, and preserving our national security interests”, said lawmaker Debbie Dingell.

This call to action arises amidst mounting concerns about China's rapidly expanding EV industry, which has sparked fears of overcapacity and its ramifications for the sector. While expressing support for the Biden administration's endeavors to maintain US leadership in the automotive realm, the legislators underscored the economic and national security implications stemming from recent initiatives by the Chinese Communist Party.

Citing data indicating a marginal decline in US imports of automobiles from China in 2023, totaling US$2.5 billion —a 0.5% year-on-year decrease— the lawmakers caution against complacency.

In Mexico, the surge in Chinese vehicle imports has presented logistical hurdles. With companies like JAC, Chirey, Omoda, Changan, and BAIC ramping up exports, Mexican ports witnessed a twofold increase in the import of Chinese vehicles during the first two months of the year. This influx has resulted in congestion, logistical complexities, heightened costs, and delays in vehicle deliveries.

Guillermo Rosales, president of the Mexican Association of Automotive Distributors (AMDA), underscores the shifting landscape in vehicle imports, with Chinese-made cars comprising a significant share of new imports. Consequently, there have been logistical adjustments, with over two-thirds of vehicles imported into Mexico now originating from Asia.

To mitigate the strain, alternative ports like Mazatlan, Ensenada, and Acapulco are being utilized, as major ports like Lazaro Cardenas and Manzanillo grapple with saturation.