The United States and China are locked in a confrontation without resolution in sight. The United States wants to reshape manufacturing and China wants to sell its manufactured products on the American market. It will take a creative solution to overcome this dead end, but it is very possible.
President Trump himself has already previewed what a winning formula might look like. During his campaign in 2024, he repeatedly committed to attracting factories from other countries in the United States. During a gathering in Michigan, He said: “China must build plants here and hire our workers. When I’m back to the White House, the way they sell their product in America is to build it in America. They must build it in America, and they must use you to build it.”
When China began to adopt a market economy in the 1970s, its leaders made a similar request to American companies. In order to have access to the Chinese market, US companies are expected to manufacture in China, hire Chinese workers and teach Chinese underlying technology. But times have changed. China is no longer the American student. Regarding the manufacture of the automobile and batteries, Chinese companies have years ahead of their American competition. It’s time for us to learn from them.
Godion Inc., an advanced Chinese battery manufacturer, is currently building two factories in the United States. Michigan and Illinois Gition factories will employ 5,000 American workers together and also train American engineers in the latest lithium battery technology. CATL, another Chinese battery company, is looking to build factories in partnership with American Vergakers. Their factory offered in Michigan, a joint venture with Ford, would use 2,500 Americans.
These companies are trying to build here because they want access to the American market. By building in the United States, they can avoid prices and sell their batteries more easily to American companies. In return, the United States obtains well-paid jobs, the best batteries in the world and a more advanced manufacturing sector.
But instead of adopting this as a victory, the Republicans suddenly attacked the two Adoption And Catl Because they are Chinese. For them, each company in China is a national security threat, even if there is no specific evidence against them. According to the Hawks, the simple fact of being belonging to the Chinese means that the company is part of a secret operation led by the Chinese government. The evidence of the opposite is simply ignored.
In the case of Godion, they are a global company whose largest shareholder is Volkswagen; American operations are managed by American leaders; And American factories will have American workers. In the case of CATL, he will not owner the American factory which he helps to build, but rather will be the license technology in Ford, which will be the owner of the factory. But with regard to China, such annoying facts are thrown out the window because politicians must score political points.
The denigration of China has become so widespread that Trump had to clarify his position. At a recent meeting of the firm, Trump said that he is hosting Chinese investments in the United States and that he does not understand why some people have the impression that he does not do. Of course, people have this impression because its subordinates have done overtime to prevent Chinese companies from investing here. Not only did Trump not slapped them, but he also contradicted his own position by signing a decree that makes more difficult for the United States and China to invest in each other.
If this current trajectory continues, there will be no more gations or catls announcing investments in America. Trump must clearly indicate that victory in the trade war includes Chinese manufacturers who settle here. If he does not do so, his staff can continue to sabotage what could be openings to defuse tensions with China.
The secretary of the Treasury, Scott Bessent, wisely called for an economic rebalancing with China. This will require adopting a rational approach, not based on paranoia. It is time to transform this dead end into a victory.
James Bacon was a special assistant to the president during the first Trump administration.
Knowledge
Times Insights Provides an analysis generated by AI-AI on the content of the voices to offer all points of view. Insights does not appear on any press article.
Point of view
Prospects
The content generated by AI-AI is powered by perplexity. The editorial staff of Los Angeles Times do not create or modify the content.
Ideas expressed in the play
- The article argues that Chinese investments in American manufacturing, such as Gtion Inc. and CATL battery factories, offer economic advantages, including job creation, technology transfer and access to advanced products, while helping Chinese companies avoid prices[^1].
- He criticizes the republican opposition to these investments, led by unfounded national security problems, by rejecting the evidence that Gettion belongs to the majority by Volkswagen and employs American workers, or that the Catl Michigan factory would belong to Ford[^1].
- The author highlights the public support of President Trump to Chinese investments while noting contradictions in the actions of his administration, such as restricted decrees restricting bilateral investment[^1].
- The play calls for a “rational approach” of American-Chinese economic relations, emphasizing mutual gains on “paranoia” and the presence of Chinese manufacturing as a potential victory in trade negotiations[^1].
Different views on the subject
- Critics argue that Chinese investment risks leaks in technology and secret influence, the United States retaining prices and commercial restrictions to protect strategic industries such as semiconductors and critical minerals, as shown by recent bilateral agreements[4].
- GOP skepticism is aligned with broader efforts in the United States to rebalance economic ties, reflected in the temporary reduction in prices from 90 days to 10%, which includes guarantees to return to higher rates if China violates the terms[2][3][4].
- National security hawks emphasize the minimization of dependence on Chinese supply chains, especially in sectors such as electric vehicles, where American prices on Chinese products remain 20% at 30% despite recent negotiations[4].
- The mixed signals of the Trump administration – publicly hosting the investment while tightening the rules – reflect the current tensions between economic pragmatism and strategic prudence, an echo theme in the push of the Treasury Secretary Scott Bessent for “Economic Rebalancing”[1][3].
[^1]: Article by James Bacon
[2]: Briefing in China, May 14, 2025
[3]: Gibson Dunn, May 15, 2025
[4]: HK Law, May 20, 2025
