Can a Chinese Car Company Make It in America?

Summary

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WSJ What’s News – PM Edition

Episode Title: Can a Chinese Car Company Make It in America?
Date: January 8, 2026
Host: Alex Osola (with reporting from Joe Barrett & Ryan Felton)

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Overview

This episode explores chilling new developments at the intersection of U.S. politics and international business, focusing in depth on whether Chinese auto giant Geely—a leading electric vehicle (EV) maker—can successfully enter and compete in the fiercely protected American car market. The episode also covers escalating political tension surrounding a deadly ICE shooting in Minneapolis, a Senate rebuke of the Trump administration's foreign policy, a surprising drop in the U.S. trade deficit, and an internet blackout amidst civil unrest in Iran.

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Key Segments & Insights

1. Political Turmoil After ICE Shooting in Minneapolis

[00:50-04:26]

• Incident Summary: An ICE officer fatally shot 37-year-old Renee Nicole Good, provoking a political divide. Authorities disagree on the circumstances, with state and city officials contesting the federal self-defense claim.
• Local Reaction: Protests erupt in Minneapolis, reminiscent of the George Floyd unrest. The FBI has excluded state investigators from the case, prompting distrust among state officials.
  • Quote:
    "It feels very, very difficult that we will get a fair outcome...people in positions of power have already passed judgment from the president to the vice president to Kristi Noem have stood and told you things that are verifiably false."
    —Unidentified commentator [01:41]
• Federal Response: Homeland Security Secretary Kristi Noem insists state authorities have no jurisdiction. VP J.D. Vance both mourns the death and criticizes the "far left" for inciting hostility against law enforcement.
  • Quote:
    "I can believe that her death is a tragedy while also recognizing that it's a tragedy of her own making and a tragedy that of the far left who has marshaled an entire movement, a lunatic fringe, against our law enforcement officers."
    —Vice President J.D. Vance [02:19]
• On the Ground:
  • Joe Barrett reports on heightened emotions at protests; a notable presence of federal agents and "Minnesota nice" attempts at humanizing conversation amidst tension.
  • Quote:
    "They just don't feel like this entire operation is necessary. They don't feel like they're being made more safe by getting these people who've been here for years out of the country."
    —Joe Barrett [03:19]

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2. Senate Blocks Military Action in Venezuela

[04:35-05:26]

• Senate passes a resolution (with five Republicans joining Democrats) blocking President Trump from unilateral military action in Venezuela. The move is seen as rare bipartisan resistance, though unlikely to become law.
• Venezuelan government announces intent to release political prisoners amidst unrest.

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3. Can Geely—and Chinese Automakers—Break Into the U.S. Market?

[05:59-09:04]

• Background: Geely, a major Chinese EV producer and parent company to Volvo and Polestar, hints at a U.S. expansion within three years—potentially making it the first big Chinese brand to enter America at scale.
• Major Barriers to Entry:
  • Tariffs:
    • Heavy tariffs imposed under both the Biden and Trump administrations sharply restrict import viability.
    • "The tariffs are a big barrier, but that doesn't change the fact that if you were to build here, you would not be paying the tariff."
      —Ryan Felton [06:33]
  • Software Restrictions:
    • Effective for 2027 model year, bans on Chinese connected-vehicle software would require significant localization of both manufacturing and software to comply.
  • Political Opposition:
    • High-level pushback from Congress and lobbying groups; Senator Bernie Moreno (R-OH): "There will be no Chinese cars in America."
    • Consumer mistrust of Chinese brands is also a concern.
  • Existing Footprint and Loopholes:
    • Existing Volvo plant in South Carolina (owned by Geely) could be a means to localize production and bypass tariffs.
    • Quote:
      "If Geely wanted to bring some of these brands that are popular in China and elsewhere around the world to the US they have a way to start...getting around those tariff barriers much more easily than some counterparts who are in China."
      —Ryan Felton [06:58]
• Market Intrigue:
  • The scenario is "intriguing" because of Geely’s small U.S. foothold and potential to scale up existing manufacturing to meet regulatory and political demands.

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4. Related Headlines & Global Context

[09:08-11:39]

• China and Tech: Beijing signals intent to scrutinize Meta’s acquisition of AI startup Manus, warning to tech entrepreneurs about cross-border deals.
• U.S. Markets: Mixed stock performance; Dow up, Nasdaq down, S&P flat; Brent oil rises.
• Trade Deficit: October deficit falls to lowest since 2009, attributed to swings in gold and pharmaceuticals trade.
• Private Equity: L Catterton takes controlling stake in Good Culture; the company valuation exceeds $500 million amid surging sales.
• Paramount Skydance: Persistent $78B bid for Warner Brothers Discovery continues, despite Warner’s commitment to Netflix.
• Iran: Near-total internet blackout as strikes and protests grow; at least 36 killed and over 2,000 arrested.

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Notable Quotes

• "People yelling and screaming, so, you know, emotions running very high...But...just a random Thursday, not a huge, huge amount [of people]."
  —Joe Barrett on Minneapolis protests [02:49]
• "Some people might just be turned off by the idea of buying from a Chinese brand. That's sort of why the Geely scenario is so intriguing..."
  —Ryan Felton [08:20]
• "You just don't know where ICE is going to show up next. People are coming out onto the streets and blowing their whistles and trying to let their neighbors know about it."
  —Joe Barrett [03:19]

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Timestamps for Major Segments

• Minneapolis ICE shooting & protests: [00:50-04:26]
• Senate Venezuela vote: [04:35-05:26]
• Geely and Chinese carmakers in the U.S.: [05:59-09:04]
• China scrutinizes Meta AI acquisition: [09:08-09:45]
• Markets, trade, business news: [09:45-11:15]
• Iran internet blackout and unrest: [11:15-11:39]

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Tone & Style

The episode maintains a brisk, factual, yet conversational tone—reflective of WSJ’s signature analytical style. It balances urgency (breaking news, protest scenes) with careful regulatory and market analysis, and punctuates dense topics with illustrative on-the-ground perspectives and concise expert commentary.

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This summary covers all core discussions and key quotations essential for understanding the episode’s timely exploration of Chinese business ambitions in the U.S. and the ripple effects of political and economic events shaping global markets today.

Transcript

[Ryan Knudson]

Hey, it's Ryan Knudson, host of the Journal Podcast, our show about money, business and power. If you're looking for more deeply reported stories like we share every day, consider becoming a subscriber to the Wall Street Journal. Visit subscribe.WSJ.com TheJournal all lowercase to subscribe now.

[Alex Osola]

The vice president defends the ICE agent who killed a woman in Minneapolis. Plus, Chinese car company Geely is considering a big push in the US Will look at the challenges in its way.

[Ryan Felton]

There was just a congressional hearing a few weeks ago about what was described as China's threat to the American auto industry. The top lobbying group is urging the Trump administration to prevent Chinese companies from coming here. Given that political reality, it's not just tariffs. That might be the thing that holds it up.

[Alex Osola]

And Iran's Internet shuts down amid widespread unrest. It's Thursday, January 8th. I'm Alex Osola for the Wall Street Journal. This is the PM edition of what's news, the top headlines and business stories that the World Day in Minneapolis. There's a deepening political divide after an ICE officer yesterday shot and killed a 37 year old woman, Renee Nicole Good. The Trump administration says the agent fired in self defense after Good tried to run over officers, but state and city officials dispute that version of events. Videos from the scene have raised questions about whether Good was trying to flee rather than harm someone. Now Minnesota officials say the FBI has shut them out of the investigation into the shooting. Governor Tim Walz, a Democrat, said an investigation that doesn't include state law enforcement can't be trusted.

[Unidentified Protester or Commentator]

It feels very, very difficult that we will get a fair outcome. And I say that only because people in positions of power have already passed judgment from the president to the vice president to Kristi Noem have stood and told you things that are verifiably false.

[Alex Osola]

Homeland Security Secretary Kristi Noem said the state's law enforcement agency doesn't have any jurisdiction in the investigation. Vice President J.D. vance, speaking in the White House briefing room today, defended the agent responsible for yesterday's shooting. He also criticized Good.

[Vice President J.D. Vance]

I can believe that her death is a tragedy while also recognizing that it's a tragedy of her own making and a tragedy that of the far left who has marshaled an entire movement, a lunatic fringe, against our law enforcement officers.

[Alex Osola]

Meanwhile, protests against ICE have continued in the city.

[Protesters]

Ice, go home. Ice, go home.

[Alex Osola]

WSJ national affairs reporter Joe Barrett is on the ground in Minneapolis and joins me now. Joe, you were just at some of the protests there. What are they like, there were probably.

[Joe Barrett]

Dozens of protesters and more than 100 Border Patrol agents and other federal agents lined up from preventing them from getting into the parking lot of this very large building, the Whipple Federal Building, where the Border Patrol has based their operations in Minneapolis. People yelling and screaming, so, you know, emotions running very high. But, you know, just since it's a random Thursday, not a huge, huge amount.

[Alex Osola]

Of people there, just generally in the city, like, what's the vibe? Kind of like, right now, this is.

[Joe Barrett]

The city that faced the whole George Floyd protests, and they're kind of feeling like it's sort of happening again. Their city's been taken over by this national event, and people are on edge. You just don't know where ICE is going to show up next. People are coming out onto the streets and blowing their whistles and trying to let their neighbors know about it. Everybody's saying things like, they just don't feel like this entire operation is necessary. They don't feel like they're being made more safe by getting these people who've been here for years out of the country. So, yeah, you know, go home, Basically, we're fine. I spoke with a woman who lives across from Powderhorn park, which saw an encampment during the George Floyd protests, and she says she lives about five blocks from where this shooting happened yesterday. She and her daughter came to the protest today, and she said her daughter was, like, really trying to engage with some of these guys. I saw several conversations between people and the Border Patrol agents, and, you know, she said she was asking them, you know, do you have any pets? Where do you live? Where are you from? You know, trying to make a connection with these people and not just, you know, vilify them. Of course, there were plenty of people there that were just screaming at them, but there's also sort of the Minnesota nice way of doing these kinds of things.

[Alex Osola]

That was WSJ national affairs reporter Joe Barrett. Thank you, Joe.

[Joe Barrett]

All right, thanks a lot, guys.

[Alex Osola]

And in Washington, the Senate today voted in favor of a resolution to block President Trump from taking military action in Venezuela without approval from Congress. Five Republican lawmakers sided with Democrats to pass the motion, and President Trump then lashed out at those GOP senators by name. The measure's unlikely to become law, but it's a rare bipartisan rebuke of the White House. Meanwhile, in Venezuela, the government said it would release political prisoners. It's not clear how many, but Jorge Rodriguez, the brother of acting President Delsey Rodriguez, said that it's a gesture, quote, to seek peace Coming up, the Chinese carmaker that might expand in the US A surprising shrink in the US Trade deficit and an Internet blackout in Iran. That's after the break.

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[Alex Osola]

Have you heard of Geely? It's one of China's biggest makers of electric vehicles, and it's a name you might be hearing more often in the future. The company is saying that it's likely to make an announcement about its plans to expand in the US Sometime in the next three years. If Geely does expand into the US Market, that would make it the first big Chinese auto brand to come to the US In a major way. I'm joined now by Ryan Felton, who covers the auto industry for the Journal. Ryan, let's lay a little groundwork here. Can Chinese cars actually be sold in the US Because I thought that was something the Biden administration effectively banned.

[Ryan Felton]

What the Biden administration did was impose a extremely hefty tariff on electric vehicle imports. The Trump administration then imposed additional tariffs. So, yeah, the tariffs are a big barrier, but that doesn't change the fact that if you were to build here, you would not be paying the tariff.

[Alex Osola]

What about the ban on Chinese connected vehicle software?

[Ryan Felton]

It's supposed to go into effect for the 2027 model year, which is what you would start seeing later this year come to market. Chinese carmakers, if they are willing to find a way to build cars here and localize their supply chain for parts that would be covered by this software ban, that is at least on paper. For now, that's the main barriers. There have been cars by Volvo and Polestar, for example, which are owned by Geely, sold here already. Volvo currently has a plant in South Carolina that's pretty underutilized. So if Geely wanted to bring some of these brands that are popular in China and elsewhere around the world to the US they have a way to start getting cars built here and getting around those tariff barriers much more easily than some counterparts who are in China.

[Alex Osola]

I want to talk about reasons why this expansion by Geely might not happen. So there has already been some political opposition. There's one Republican lawmaker who is a big ally of President Trump, Senator Bernie Moreno of Ohio and he said there will be no Chinese cars in America. Would you expect there to be more political opposition and what kinds of other barriers might get in the way?

[Ryan Felton]

That's for sure going to be the biggest reason why you might not see a Chinese company come here and build a plant to start trying to make cars here. There was just a congressional hearing a few weeks ago about what was described as China's threat to the American auto industry. The top lobbying group has consistently been urging the Trump administration to prevent Chinese companies from coming here. Some people might just be turned off by the idea of buying from a Chinese brand. That's sort of why the JL scenario is so intriguing, because they really do already have a small foothold here. It's just a question of do they want to bring some of these other brands that have kind of blossomed elsewhere to the US as well?

[Alex Osola]

That was WSJ reporter Ryan Felton. Thank you, Ryan.

[Joe Barrett]

Thanks.

[Alex Osola]

Separately in China, the government said it would review Meta's recent acquisition of artificial intelligence startup Manus, whose parent company was set up in China and then moved its headquarters to Singapore. People familiar with the matter say Beijing wants to protect its AI technology. It's a warning signal to Chinese entrepreneurs looking to Silicon Valley. But in the case of Manus, Beijing appears to have few tools to block its deal with Meta. In markets today, major US Indexes were mixed as investors rotated out of technology stocks. The Dow rose 0.6%, the Nasdaq fell 0.4%, and the S&P 500 was flat. In oil, Brent crude futures rose 3.4%. The US trade deficit shrank in October to its lowest level since 2009. Imports fell while exports rose, and the Resulting deficit was $29.4 billion, nearly 40% smaller than September's level. Today's numbers suggest that big swings in just a few trade areas, especially gold and pharmaceuticals, explain a lot of that volatility. We're exclusively reporting that the private equity firm Elle Catterton is taking a majority stake in cottage cheese brand Good Culture. That's according to executives from the companies. The deal values Good Culture at more than $500 million. Good Culture CEO said sales have jumped by almost 300% over the past three years as Americans try to get more protein into their diet. And Paramount Skydance continued pushing its nearly $78 billion hostile bid for Warner Brothers Discovery, announced a day after Warner said it plans to stick with its deal with Netflix. And in Iran, where widespread protests continue, a watchdog group says the Internet has been almost completely shut down the country went offline today around the same time as the son of Iran's former shah called for people to protest. The demonstrations began last month, and today workers in the oil sector and shopkeepers went on strike. An oil trade union said security forces fired at its members. A human rights group says more than 2,000 people have been arrested and at least 36 killed in the unrest. And that's what's news for this Thursday afternoon. Additional sound in this episode, courtesy of Reuters. Today's show is produced by Pierre Bienname with supervising producer Tali Arbel. I'm Alex Osola for the Wall Street Journal. We'll be back with a new show tomorrow morning. Thanks for listening.

[Joe Barrett]

Sam.