China’s auto juggernaut is setting its sights on America — and it may not have to cross the US border to get dangerously close.
Nissan Americas Chairman Christian Meunier expects Chinese automakers to begin building vehicles in Mexico within two to three years, placing Chinese manufacturing within hanging distance of the US market just as Washington scrambles to keep Chinese automobiles and technology out.
Meunier says Nissan is already transferring aggressively to slash prices in Mexico before the Chinese arrive, admitting the company’s present price and provide construction isn’t good enough to compete with BYD.
Christian Meunier. Bloomberg via Getty Images
A BYD dealership is seen in Tijuana. Instagram/@bydtijuana
He also described China’s advance through Latin America as “a big, fast invasion.”
Mexico is already a main beachhead. Chinese automobiles accounted for one-third of new-car gross sales there in 2024, according to a July 2026 report from the Office of the US Trade Representative — up from just 4% in 2020.
And China has a lot of metallic to unload.
Chinese factories can produce 55 million automobiles a 12 months, while the nation’s home market absorbs roughly 25 million, the report said. That leaves huge manufacturing capability trying for prospects.
Mexico could be the apparent staging ground. Chinese-built automobiles bought there face a 50% tariff, but manufacturing regionally would help corporations keep away from that barrier.
Washington, meanwhile, is attempting to slam the brakes on any Chinese advance into the US.
A stay streamer works at the show of Chinese automaker Chery on the second media day at the Beijing International Auto Exhibition in Beijing. Getty Images
Sen. Elissa Slotkin, D-Mich. CQ-Roll Call, Inc via Getty Images
Chinese electric automobiles already face a 100% US tariff. Federal connected-vehicle restrictions also goal automakers owned or managed by China or Russia, starting with automobiles for the 2027 model 12 months and extending to certain {hardware} in 2030.
Now lawmakers need those restrictions completely cemented.
Sens. Bernie Moreno (R-Ohio) and Elissa Slotkin (D-Mich.) are pushing the Connected Vehicle Security Act of 2026, which would bar the import, manufacture and sale of linked automobiles, software program and {hardware} linked to China, Russia or North Korea.
The Senate Commerce Committee authorised the measure unanimously in July, but a September attempt to transfer it stalled. The invoice faces a slender window to clear the House and attain the president’s desk before the finish of the 12 months, or the legislative course of would have to begin over.
A humanoid robot speaks at the show of Chinese automaker Chery. Getty Images
The largest battle may be over whether Chinese corporations get another route in: building vehicles on American soil.
President Donald Trump said in September he would settle for Chinese corporations opening US factories. Slotkin fired back that doing so would be “the beginning of the end of auto manufacturing in the United States.”
The commerce group representing Ford, General Motors and Stellantis has also opposed the thought.
Other executives are bracing for the same menace. Hyundai CEO Jose Munoz warned that the US market could come to resemble Britain’s or Europe’s if boundaries fall, while Ford CEO Jim Farley has said he expects Chinese manufacturers to enter the US within 5 to 10 years.
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