Auto Heads Talk China with Gallagher Committee

High-level meetings took place on Tuesday between leading automotive executives and federal lawmakers, with discussions centering around concerns over the auto industry's reliance on Chinese supply chains, the importance of permitting reform for critical minerals, and the imbalance of testing opportunities for autonomous vehicle technologies between the U.S. and China.

These pivotal discussions saw T Chairman Mike Gallagher (R-WI), Ranking Member Raja Krishnamoorthi (D-IL) of the Select Committee on the Chinese Communist Party, and Rep. Haley Stevens (D-MI), and Rep. John Moolenaar (R-MI) meet with CEOs of top automotive firms, including Ford Motor Co. and General Motors Co. in Detroit.

The Select Committee members aimed to gain insights into how Congress can help the U.S. automotive industry reduce its dependence on supply chains from the People's Republic of China (PRC), and what bipartisan steps could be taken to ensure the U.S. retains its edge in future automotive technologies.

Speaking in a press conference following the meetings, Chairman Mike Gallagher addressed the challenge: "American workers and American companies are on the front lines of this competition with the Chinese Communist Party. Hardworking men and women in the industrial Midwest have been particularly impacted by the CCP's violation of trade agreements, intellectual property theft, and economic coercion, preventing us from competing on a level playing field."

Gallagher went on to highlight that any agreement with PRC automotive companies should not be eligible for Inflation Reduction Act tax credits. "The goal of the Inflation Reduction Act was to reduce our dependence on China in key areas. We need to ensure we are working towards that goal and not inadvertently deepening our reliance on Chinese companies."

Mary Barra, CEO of General Motors Co., and Jim Farley, CEO of Ford Motor Co., were among the top executives present at the meeting. In a statement, GM spokesperson Jeannine Ginivan expressed her company's appreciation for the discussion opportunity: “GM is making historic investments in the U.S. to transform our portfolio, strengthen American manufacturing and jobs, and build more secure and resilient supply chains.”

Lawmakers declined to detail the specific contents of their private conversations. However, they signaled consensus on key issues requiring further exploration and policy implementation. One significant point was the need for revisiting regulations related to autonomous vehicle testing, including restrictions on exempt testing vehicles per manufacturer. A particular concern was the fact that while Chinese companies are permitted to test Autonomous Vehicles in the U.S., the same is not allowed for U.S. companies in China.