Krishnamoorthi Sounds Alarm on Chinese Communist Party Tactics Targeting U.S. Auto and EV Markets

WASHINGTON — At today’s hearing of the House Select Committee on the Strategic Competition Between the United States and the Chinese Communist Party, Ranking Member Raja Krishnamoorthi (D-IL) warned that the CCP is deploying “the same economic playbook” it used to weaken U.S. competitiveness in past industries—IP theft, forced joint ventures, massive subsidies, overproduction, export dumping, and even forced labor—to gain an upper hand in the global auto market and the fast-growing EV sector. He said these tactics enable Chinese automakers to underprice rivals and urged urgent action to “protect American workers and rebuild our industrial strength.”

Krishnamoorthi emphasized that China now sells two-thirds of the world’s EVs, despite selling none a decade ago, and noted that EVs will make up 60 percent of global new car sales by 2040. “The question before us is who will own the EV market in 15 years,” he said, calling for stronger efforts to stop IP theft and forced labor, bipartisan recognition that EVs are the future of the auto market, and major investments in U.S. workers so they can “use AI and robotics to advance in their careers rather than be replaced by them.”

In questioning the hearing’s witnesses, Krishnamoorthi highlighted evidence that thousands of Uyghur workers have been forcibly transferred from Xinjiang to factories such as Wuhan’s “Car Valley,” tying dozens of global automakers to forced-labor supply chains. He also showed how Chinese companies evade U.S. tariffs by routing auto parts through third countries, holding up a brake hose and window regulator purchased locally and online as real-world examples. Krishnamoorthi pointed to bipartisan legislation he leads with Chairman Moolenaar and Rep. Hinson to strengthen DOJ enforcement and reiterated that “American competitiveness starts with investing in American workers,” citing successful AI-enabled training programs at Washtenaw Community College.

Ranking Member Krishnamoorthi’s opening statement is available here and his question line is available here.

All graphics mentioned below are visible in the video footage.

Thank you, Mr. Chair. I want to talk about three things today. First, how the CCP has used their economic playbook to get ahead in the auto industry. Second, the race to the auto industry of tomorrow. And third, how the U.S. can win this race.

The U.S. was once the unassailable automobile leader. Henry Ford pioneered mass production and gave us the first car. The U.S. auto industry was pedal to the metal, boosting economic growth and providing millions of good-paying union jobs. But now China is in the lead.

Let’s look at how the CCP used their playbook in the auto industry to steal IP, overproduce cars, export them at unfair—unfairly low—prices. In the auto industry, Beijing began forcing foreign automakers into partnerships called joint ventures with Chinese companies. The CCP used these partnerships to steal foreign technology and designs.

Here is a picture of what looks like an iconic American car, the Jeep. Except—look closely. It is not a Jeep. This is a BJ40 made by Chinese state-owned enterprise BAIC. 

Let’s take a look at another one. This is surely a Land Rover, a European car we all recognize. Wrong again. This is a Land Wind made by JMC, another Chinese state-owned company. And there are many more examples. 

The next move in the CCP playbook is to overproduce these cars and export them at cut-rate prices to kill competition, with the help of massive subsidies for the state-owned enterprises. 

You can see here that China's domestic demand for cars is flat at around 25 million cars per year. But that hasn’t slowed them down. Look at how China’s production capacity and domestic sales have diverged. China’s domestic automakers are pumping out 31 million cars a year, regardless of domestic demand, and then dumping the excess on global markets. Between 2021 and 2024, China's auto exports surged over 300%. 

And their cars appear to be priced below what—what it—what it would even cost to make a car. For example, one Chinese EV costs merely $4,000. 

China is dominating EVs. As we can see here, China sold two-thirds of all EVs in 2024, while the U.S. sold just about 10%. Ten years ago, however, China wasn’t selling any EVs, and the U.S. was dominating the EV market. Why is China dominating now? Aside from IP theft, massive subsidies, and state-owned enterprises, China recognized that EVs were the market of the future. 

Here’s the best chart that I have to show this. As you can see, EVs were over 20% of car sales last year in 2024. But by 2040, EVs will be 60% of global new car sales as traditional car sales decline. Regardless of what you think about EVs, this is where the global auto market is going. 

The question before us now is this: who will own the EV market in 15 years? China is ahead in the race today, but we can lead again if we—if we—act now. 

The path forward is this. First, we must stop the CCP from stealing our IP, dumping cheap cars on global markets, and using forced labor in the goods they export worldwide. 

Second, let’s accept reality. The EV market is the booming segment of the auto market and is an opportunity for American businesses to lead. We got to take this out of politics. This is the reality. EVs are the future. It doesn’t have to be a Democrat or a Republican issue. Let’s figure this out together. 

Finally, we need to launch a generational investment in America’s workforce. Many Americans worry that AI and robots like this one will replace them. As we use these new technologies, we must make sure that robots enhance workers’ roles, not replace them. That means upskilling workers to operate AI-driven systems through technical skills training, new career pathways, and better STEM programs and education all the way from kindergarten through 12th grade. 

Because if we don’t address the challenge head on, we may wake up to find that our auto industry has gone the way of our steel mills, our solar factories, and our shipyards—namely, we’ll be lapped in the race with the CCP. 

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