White House Unveils Plan to Protect US Auto Industry from Chinese Competition

The Biden administration aims to prevent a repeat of the early 2000s 'China shock' by implementing safeguards against underpriced Chinese auto exports.

• Top White House economic adviser Lael Brainard outlined the administration's strategy to shield the U.S. auto sector from China's perceived unfair trade practices.
• The U.S. Commerce Department proposed banning key Chinese software and hardware in connected vehicles due to national security concerns.
• The administration has imposed steep tariff hikes, including a 100% duty on electric vehicles, to protect strategic industries from Chinese imports.
• Efforts are underway to prevent Chinese automakers from circumventing tariffs by setting up factories in Mexico, with discussions already taking place with Mexican officials.
• The plan comes amid the 2024 presidential election, where the future of the U.S. auto industry and competition with China are major campaign issues.

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