President Donald Trump says he would be open to Chinese automakers building vehicles inside the United States, provided they employ American workers, creating a new political debate over U.S. trade policy, manufacturing and national security.

Trump Draws Line Between U.S. Production and Imports

In a recent Fox News interview, Trump said Chinese companies could establish manufacturing plants in the United States and employ American workers. He pointed to foreign automakers such as Japanese companies that already manufacture vehicles in America.

At the same time, Trump said he does not want Chinese automakers producing vehicles in Mexico and exporting them into the U.S. market.

The comments come as Washington maintains significant restrictions on Chinese vehicles and connected-car technology. Chinese electric vehicles also face very high U.S. tariffs.

Debate Grows Ahead of Trump-Xi Meeting

Trump's position is likely to attract attention in Congress, particularly from lawmakers who have raised concerns about Chinese automotive technology, data security and competition with American manufacturers.

Sen. Elissa Slotkin has warned against allowing Chinese vehicles greater access to the U.S. market, while major American automakers have pushed Congress to maintain restrictions on Chinese-connected vehicles.

Trump's comments also come ahead of a planned meeting with Chinese President Xi Jinping in Washington, giving the issue added significance for U.S.-China trade relations and American industrial policy.

What Comes Next

No new agreement allowing Chinese automakers to establish U.S. factories has been announced. The debate is likely to continue as lawmakers, automakers and the Trump administration weigh American jobs, foreign investment, national security and competition in the electric vehicle market.