Chinese officials are weighing whether to include BYD Co. in a business delegation accompanying President Xi Jinping to his Sept. 24 state visit with President Donald Trump in Washington, Bloomberg News reported, citing people familiar with the matter. According to the report, senior officials including Xi’s chief of staff, Cai Qi, are reviewing a list of Chinese business leaders, and the list is not final.
Adding BYD founder Wang Chuanfu would put the world’s largest EV maker in the room at a moment when Chinese vehicle access to the U.S. market has become one of the most contested questions surrounding the summit.
The delegation itself is unusual. Reuters first reported that Xi is preparing a large business delegation for the trip, a rare step given U.S. skepticism toward Chinese investment and Beijing’s strained relationship with private enterprise. A U.S. official told Reuters the White House is not tracking a Chinese CEO delegation, without explaining what that meant. The South China Morning Post reported that the talks over business participation are tied to preparations to extend the one-year trade agreement reached in Busan last October. China to bring business execs to DC during state visit – Taipei Times +2
A company under federal scrutiny
BYD arrives at the summit with significant baggage in Washington. On June 8, the Pentagon released an updated list of “Chinese Military Companies” under Section 1260H of the National Defense Authorization Act, adding BYD alongside Alibaba, Baidu and battery makers CALB and EVE Energy. The expanded list names 188 companies, up from roughly 130 in the prior version. The designation does not explicitly impose sanctions, but bars the Defense Department from contracting directly with listed companies and, beginning in June 2027, from procuring their products through third parties. BYD has denied supporting the Chinese military, Bloomberg reported. Pentagon Adds 65 New Entities to the 1260H List of Chinese Military Companies +2
The company’s vehicles also face 100% U.S. tariffs, and its American units filed a legal challenge in the U.S. Court of International Trade in January arguing those duties are invalid. Beyond tariffs, a Biden administration regulation from early 2025 effectively bans Chinese automakers from selling or building passenger vehicles in the U.S. BYD already operates an electric bus plant in California, according to Bloomberg. The Next WebNBC News
Bloomberg reported that China’s selection criteria include having a potential U.S. deal in progress, loyalty to the Communist Party, and an ability to avoid drawing attention away from Xi. Wu Xinbo, director of Fudan University’s Center for American Studies, told Bloomberg that BYD would make sense on the list. “China would love to invest in the EV sector in the US, if they permit it,” he said.
Trump’s mixed signals
Trump has repeatedly signaled openness to Chinese automakers building in the U.S. with American labor. “We don’t allow his cars into the United States, and we never did,” he told Fox News, according to Bloomberg. “Now, if China wanted to come in, and open a plant to build their cars here, I’d be okay with it.”
That echoes earlier remarks. Trump told the Detroit Economic Club in January he would welcome Chinese automakers building plants staffed with American workers. He has also drawn a line on North American workarounds, saying he does not want Chinese automakers building cars in Mexico and shipping them to the United States. Dealership GuyNBC News
Other parts of the administration have taken a harder tone. Transportation Secretary Sean Duffy sent a letter to Ford that, according to one report, criticized the company’s CATL battery license, its Geely venture in Spain and its talks with BYD. U.S. Trade Representative Jamieson Greer has called Canada’s opening to Chinese EVs problematic. Bloomberg reported that Ford CEO Jim Farley discussed a possible joint-venture framework with the White House in February. Electric VehiclesElectric Vehicles
Slotkin’s warning and Trump’s denial
Sen. Elissa Slotkin, D-Mich., raised the stakes this month with a post on X. “We hear rumors that Trump is planning to allow Chinese cars to be sold in the US, as part of a larger deal he’s putting together,” she wrote, according to Bloomberg. “That would be a strategic mistake — and one that will irrevocably impact not just the 1.2 million Michigan jobs directly or indirectly tied to the auto industry, but the overall manufacturing capacity of the United States.”
Slotkin did not cite a source, and the White House has not announced any plan to roll back auto trade barriers with China. Trump dismissed her statement as a false rumor and said he had kept Chinese vehicles out of the country. ElectrekNBC News
Slotkin tied the warning to the Connected Vehicle Security Act, which she co-sponsored with Sen. Bernie Moreno, R-Ohio. The bill would codify the Commerce Department’s existing rule against connected vehicles from “countries of concern” and extend it to Chinese components and companies operating through third countries. It cleared the Senate Commerce Committee unanimously in July but still requires a full Senate vote. The auto industry’s lobbying group and the UAW have pressed Congress to pass it, and in May, 74 House Democrats and 52 House Republicans wrote to Trump urging him not to admit Chinese carmakers. Michigan senator claims Trump might open door to Chinese cars as Xi visit nears +3
Even if Washington opened the door, the timeline would be long. Reuters noted that any Chinese plant in the U.S. would take two to three years to reach production. Electric Vehicles
Closing in from the north and south
While the U.S. debates, Chinese automakers are gaining ground on both borders. Prime Minister Mark Carney reached a deal with China in January to scale back Canada’s 100% tariffs on Chinese-made EVs in exchange for Beijing sharply reducing retaliatory levies on canola and other Canadian farm exports. Canada will allow up to 49,000 Chinese-made EVs in 2026 at a tariff of about 6%, with the quota growing 6.5% annually to roughly 67,000 units by 2031. BYD is planning about 20 sales locations with partners in Canada. In Mexico, BYD and its Chinese rivals have already gained significant market share. Canada on track for increased low-tariff Chinese EV imports, Joly says – The Globe and Mail +3
For U.S. dealers, the near-term question is less whether Chinese brands arrive soon, since no policy change has been announced, and more whether Washington maintains, expands or loosens existing restrictions, and how the Sept. 24 meeting factors in. CBT News
BYD, China’s Foreign Ministry and the U.S. Embassy in Beijing did not respond to Bloomberg’s requests for comment.