Investing.com -- President Donald Trump said he would be open to Chinese automakers building vehicles in the United States with American workers, even as he pledged to maintain restrictions that have effectively shut Chinese-made cars out of the U.S. market.

Trump rejected reports that he could allow vehicles built in China to be imported into the U.S., saying the domestic market could be "overrun" if existing restrictions were lifted.

He drew a distinction between imports and Chinese companies manufacturing vehicles inside the U.S., comparing such investment with production by Japanese automakers.

"If China wanted to come in, and open a plant to build their cars here, I'd be okay with it," Trump said in a Fox News interview, adding that Chinese manufacturers would need to hire American workers.

Chinese electric-vehicle makers including BYD and Geely Automobile have expanded rapidly overseas, raising concerns among U.S. automakers as their vehicles gain ground in markets including Canada and Mexico.

Chinese cars are effectively excluded from the U.S. through steep tariffs and Commerce Department restrictions covering connected-vehicle systems linked to countries including China.

Trump's comments come ahead of a planned summit with Chinese President Xi Jinping in Washington. He made similar remarks in January, when he said Chinese automakers could potentially manufacture vehicles in the U.S.

Ford (NYSE:F) Chief Executive Jim Farley and Trump administration officials also held preliminary discussions earlier this year about a possible framework under which Chinese companies could manufacture cars in the U.S. with protections for domestic automakers. No decisions were reached.

The prospect remains politically contentious. Senators Elissa Slotkin and Bernie Moreno have introduced legislation aimed at restricting connected vehicles, software and hardware linked to China and other countries considered U.S. adversaries.

The measure, backed by Ford, General Motors (NYSE:GM) and the United Auto Workers, would also prohibit sales of connected vehicles from automakers more than 15% owned by Chinese entities.

Trump says he's open to Chinese automakers building cars in the U.S.

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