China's largest electric vehicle manufacturer, BYD, may be included in the economic delegation accompanying President Xi Jinping during his visit to the United States next week. This speculation arises as President Donald Trump recently expressed a positive stance on local production by Chinese automakers in the U.S., suggesting that discussions about BYD's investment in the U.S. could gain momentum during the upcoming U.S.-China summit.
On September 16, Bloomberg reported, citing sources, that a list of Chinese companies accompanying Xi on his state visit is under review, with BYD being a potential candidate. However, the final list for the economic delegation has not yet been confirmed.
Xi is scheduled to meet with Trump in Washington on September 24. Reports have also emerged indicating that China is considering sending a large delegation of business leaders.
If BYD is included in the delegation, it could be a sensitive choice. The U.S. imposes a 100% additional tariff on Chinese electric vehicles and has implemented strict regulations on Chinese passenger cars and connected car technologies citing national security concerns.
Moreover, BYD is on the U.S. Department of Defense's blacklist due to allegations of ties with the Chinese military, which the company has strongly denied.
Nonetheless, the possibility of Chinese automakers producing vehicles in the U.S. has gained traction following Trump's recent comments. He indicated earlier this month that there would be no issue with Chinese automakers establishing factories in the U.S. and hiring American workers to produce vehicles.
This has led to assessments that opportunities may arise for Chinese automakers, which have faced significant barriers to entering the U.S. market. While exporting vehicles produced in China is effectively blocked by high tariffs and regulations, establishing factories in the U.S. or forming joint ventures with local companies could represent a new business model.
Wu Xinbo, director of the U.S. Studies Center at Fudan University, told Bloomberg, "If the U.S. allows it, China is eager to invest in electric vehicles," suggesting that BYD's inclusion in the delegation is a plausible option. He noted that if a Chinese automaker successfully builds a factory in the U.S. or engages in a joint venture with an American company, it would be significant.
However, strong opposition from U.S. lawmakers and the automotive industry regarding Chinese companies entering the U.S. market raises uncertainty about whether actual investments will materialize. The U.S. automotive sector has long argued that Chinese companies distort competition by artificially lowering vehicle prices through government subsidies. Recently, the Trump administration expressed serious concerns about transactions involving Ford and Chinese battery manufacturer CATL, as well as Chinese automakers Geely and BYD, demanding a severance of ties.
Meanwhile, Xi is expected to form a large delegation of business representatives during his visit to the U.S. This move aims to demonstrate China's commitment to expanding investment and economic relations in the U.S., while also presenting negotiation cards in trade and investment discussions during the summit. According to the South China Morning Post on September 17, in addition to BYD, other companies such as Chinese smartphone maker Xiaomi, optical communication firm Zhongji Innolight, and battery manufacturer CATL are also expected to be part of the delegation.
On the U.S. side, executives from major tech companies are set to welcome Xi. Notable attendees at the U.S.-China summit dinner are expected to include Jensen Huang, CEO of NVIDIA; Sam Altman, CEO of OpenAI; and Tim Cook, chair of Apple’s board.
* This article has been translated by AI.
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