Chinese Automakers Eye US Expansion

Experts predict Chinese vehicles in American showrooms within 5-10 years as trade barriers ease.

Published on Feb. 15, 2026

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American drivers could soon have more choices and potentially lower prices as Chinese automakers set their sights on the US market. After decades of high tariffs and strained trade relations keeping these global giants at bay, experts predict Chinese vehicles will arrive in American showrooms within the next 5-10 years, driven by China's surging automotive industry and a potential softening of political resistance.

Why it matters

The influx of Chinese automakers is expected to benefit US car buyers through greater choice, particularly in the growing electric vehicle (EV) segment, which could drive down prices. However, this increased competition will likely impact the profits and market share of existing US automakers, potentially affecting the nearly 1 million people they employ.

The details

Chinese automakers are already making waves globally, with BYD overtaking Tesla as the world's largest electric car company and Geely, the owner of Volvo, seen as the most prepared to enter the US market. Experts agree that building factories within the US is the most viable path for Chinese automakers, as shipping vehicles faces a prohibitive 100% tariff. Integrating Chinese brands into the US market, however, faces challenges, including strict franchise laws that make it costly and complex to add new brands.

  • In 2023, China produced one-third of all vehicles worldwide, exporting over 8 million – a 30% jump from the previous year.
  • Former President Donald Trump has recently expressed openness to Chinese brands building plants and creating jobs within the US.

The players

BYD

A Chinese automaker that overtook Tesla last year as the world's largest electric car company and even surpassed Ford in overall global sales.

Geely

The owner of Volvo, which is arguably the most prepared to enter the US market. Volvo already operates a manufacturing plant in South Carolina, which could serve as a base for producing vehicles from Geely's Zeekr and Lynk & Co. Brands. Geely is even supplying vehicles to Waymo, Google's autonomous vehicle unit.

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What they’re saying

“If they want to come in and build the plant and hire you and hire your friends and your neighbors, that's great. I love that.”

— Donald Trump, Former President (Economic Club of Detroit)

“Foreign brands have lost more than half of their market share (in China) in the span of less than five years, and the reason isn't because Chinese consumers were told they should buy Chinese products. They just made better cars, and they made better technologies at affordable price points.”

— Bill Russo, Head of Shanghai-based investment advisory firm Automobility (newsy-today.com)

What’s next

Experts predict announcements from Chinese automakers about their US expansion plans within the next 24-36 months.

The takeaway

The potential arrival of Chinese automakers in the US market could disrupt the automotive industry, offering American consumers more choices and potentially lower prices, but also posing challenges for existing US automakers and their workforce.