Trump-Xi Summit Spurs Talk of $10,000 Chinese EVs for US Market

A former Obama administration advisor has floated a radical proposal for the Trump-Xi summit: let Chinese cars into America.

Amid a high-stakes presidential summit in Beijing, a striking proposal suggests President Donald Trump could offer to open the U.S. market to Chinese electric vehicles, a move that could slash entry-level car prices by over 60% but would require dismantling a 100% tariff wall.

"He can watch as Chinese cars are sold everywhere except America, or he can allow them to be made in America, by Americans," wrote Christopher Smart, a former senior economic policy advisor in the Obama administration, in a Barron's commentary.

The proposal lands as Chinese EV exports surge, with BYD Co. surpassing Tesla Inc. as the world's top EV seller in 2025 and models like its Seagull hatchback starting at just $10,300 in its home market. This contrasts sharply with the cheapest new U.S. EV, the Chevrolet Bolt, priced near $29,000, while a 100 percent tariff and a ban on Chinese connected-car technology currently block their import.

The gambit would pit consumer affordability against entrenched protectionist policy and national security concerns, forcing a direct challenge to U.S. automakers like General Motors and Ford. The core question is whether the economic benefit of cheaper cars outweighs fears of Chinese data harvesting, a concern one lawmaker dubbed the "TikTok on wheels" threat.

A 'TikTok on Wheels' or a $10,000 Car?

The primary barrier to entry isn't just the steep 100 percent tariff. In March 2025, a Commerce Department rule took effect prohibiting the sale of connected vehicles and parts from China, citing national security risks. Lawmakers are now seeking to codify this ban through the Connected Vehicle Security Act, which explicitly targets foreign adversaries.

"It's an economic security issue, of course, but it is also a national security issue," Senator Elissa Slotkin (D–Mich.), a sponsor of the bill, told CNBC. Slotkin likened a Chinese-made car to "TikTok on wheels," referencing the popular social media app that has faced similar scrutiny over its data collection practices and ties to Beijing.

For American consumers, however, the allure is purely economic. The average price paid for a new car in the U.S. hovers around $50,000, according to Kelley Blue Book. The availability of a vehicle like the BYD Seagull for roughly one-fifth of that price could fundamentally reshape the lower end of the auto market and provide relief to households struggling with affordability.

Made in America, by China

Smart’s proposal contains a crucial alternative: if direct imports are politically untenable, allow Chinese firms to build factories in the United States. "Allowing China’s best firms to hire, train, and pay American workers according to U.S. standards could create the basis for fair competition," he argued. This would echo the path taken by Japanese and South Korean automakers like Toyota and Kia, whose U.S. manufacturing plants have become a major part of the American auto industry.

While Chinese automakers might not be able to match their domestic $10,300 price point after factoring in U.S. labor and regulatory costs, they could still deliver a significantly more affordable product. The software and data security concerns could be addressed by requiring any vehicle sold in the U.S. to use American-approved software for its connectivity, similar to how they must meet U.S. safety standards.

The idea, radical as it sounds, is presented as a "Nixon goes to China" moment—a politically risky move that only a figure like Trump, who has built a brand on being tough on China, could realistically attempt. While the current summit with President Xi Jinping is focused on stabilizing relations and managing competition, a grand bargain on autos would represent a dramatic, if improbable, pivot.

This article is for informational purposes only and does not constitute investment advice.