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 the 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 Wang Chuanfu, BYD's chairman, is included in the delegation, it could be a sensitive decision. The U.S. imposes a 100% additional tariff on Chinese electric vehicles and has 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.
Despite these challenges, 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 issues if Chinese automakers establish factories in the U.S. and hire American workers to produce vehicles.
This has led to a reassessment of the potential for Chinese automakers, previously effectively barred from the U.S. market, to enter. While exporting vehicles from China to the U.S. is hindered 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 Center for American Studies 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 uncertainties about actual investments. The U.S. automotive sector has long argued that Chinese firms 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. to demonstrate China's commitment to expanding investment and economic relations, while also presenting negotiation cards in trade and investment discussions during the summit. During his previous visit to the U.S. in 2015, Xi was accompanied by prominent figures such as Jack Ma, founder of Alibaba, and Pony Ma, chairman of Tencent, along with senior officials from state-owned enterprises.
On the U.S. side, key executives from major tech companies are also expected to welcome Xi. Jensen Huang, CEO of NVIDIA, and Sam Altman, CEO of OpenAI, are slated to attend the dinner during the U.S.-China summit.
* This article has been translated by AI.
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