US manufacturers urge government to restrict Chinese auto imports from Mexico

A US manufacturing advocacy group has called for the US government to block the import of low-cost Chinese automobiles and parts from Mexico, citing potential threats to American car companies' viability.

The Alliance for American Manufacturing stressed concerns over the introduction of competitively priced Chinese autos, attributing their affordability to support from the Chinese government. 

The group warned that the influx of such vehicles into the American market could pose major risks to the US auto sector.

Highlighting the preferential treatment under the US-Mexico-Canada trade agreement and the $7,500 electric vehicle tax credit, the group advocated for measures to prevent Chinese-backed companies operating in Mexico from benefiting from North American trade agreements.

In response, the Chinese embassy in Washington defended China's automobile exports, stressing the industry's high-quality development and innovation.

Recent reports regarding China's plans to establish an electric vehicle factory in Mexico, as well as Tesla's investment in the region, have sparked renewed interest in the issue. 

A bipartisan group of US lawmakers has urged the Biden administration to increase tariffs on Chinese-made vehicles and explore strategies to restrict Chinese exports from Mexico.

Furthermore, concerns have been raised about the potential implications of proposed US environmental regulations, with warnings that China could strengthen its presence in America's electric vehicle supply chain and automotive market.

In December, the US Treasury issued guidelines aimed at reducing reliance on Chinese suppliers within the US electric vehicle supply chain.

(With Reuters Inputs)