Trump is in China. Vitro is a cautionary tale of Chinese investment

MEADVILLE, Pa. — President Donald Trump is in China striking new trade deals with Beijing. A glass maker in the US is warning that their top Chinese competitor is an example of the risks of letting China in.

CNBC last week toured a Vitro Glass plant in Meadville, Ohio, with Rep. Ro Khanna, D-Calif., the top Democrat on the US-China Select Committee in Congress. The plant is helping to produce glass for solar panels, and has long been producing automotive glass.

CNBC traveled throughout the Rust Belt with Khanna as part of its “Heartland Tour,” a multi-state swing through the country’s industrial heartland to highlight the growth of American manufacturing and the risks from China, America’s main rival.

During Khanna’s visit, Vitro officials took aim at the main rival, Fuyaoand warned that without protection, all competitors in the glass industry would be driven out.

A Vitro executive told Khanna at the meeting, “If we don’t do something about this, we’ll be the only two left.” “China has more money than ever before, so ultimately what they will do is they will make sure they completely destroy the competition, and then they will raise prices.”

“We definitely have to do something about this, otherwise Fuyao is going to manage the business here,” the executive said.

This dynamic underscores the risks that come from allowing Chinese investment in the US at a time when Trump is in Beijing and could sign a deal to allow even more investment. And Rust Belt lawmakers are worried that Trump will make a deal that would allow further hollowing out of the American manufacturing industry, from automotive glass to autos.

Vitro and Fuyao both make automotive glass and sell to major automakers. General Motors And ford. Vitro is headquartered in Mexico and operates the Meadville factory along with several others in the US. Fuyao operates a large factory in Moraine, Ohio, which it bought a decade ago and was initially welcomed by state leaders. The plant was the subject of the 2019 Netflix documentary “American Factory” produced by Barack and Michelle Obama’s production company.

Vitro says it and other Fuyao competitors cannot match the prices offered by the Chinese company. He said during the visit that given the maturity of the industry and the associated costs, he did not see a way to produce glass in a manner that could match Fuyao’s prices.

A Fuyao spokesperson dismissed concerns that it was undermining its competitors.

“A reliable indicator of your strength in brand is when a competitor resorts to such claims,” ​​the spokesperson said. “Our prices are reasonable, and customers choose Fuyao not based on cost alone, but based on a comprehensive evaluation of technical expertise, product quality, delivery reliability and service excellence, etc.”

Fuyao has also recently been the subject of investigation in the US. In 2024, the Department of Justice and the Department of Homeland Security Fuyao’s factory raided Part of a civil forfeiture complaint related to an investigation into a possible $126 million illegal staffing and money laundering operation in Moraine.

The DOJ said in a press release after the raid that the suspects in the case created approximately 40 “entities” to “facilitate the harboring, transportation, and employment of illegal aliens in various factories,” including Fuyao’s plant in Moren.

The Justice Department said, “It is alleged that many of the workers were illegally trafficked into the United States, primarily through Mexico, and encouraged to travel to the Dayton area to be employed by one of the targeted entities and work as a workforce at various factories.” “The majority of the workers are of Chinese or Hispanic nationality. The workers allegedly stayed in ‘family-style hotels’ (boarding houses) owned by the targeted entities and were driven to work in transportation provided by the targeted entities.”

In response to a question about the investigation, Fuyao said the company did not believe he was the target of the investigation.

“Fuyao Glass America has maintained good standing and is committed to full compliance with all applicable federal, state and local laws,” the spokesperson said.

The incident prompted criticism from Congress. Last year’s Commerce, Justice and Science appropriations bill included a requirement for a Justice Department report on “entities implicated in forced labor supply chains and a detailed description of all associated costs to carry out these efforts.”

A former Mexican ambassador to China has warned that Fuyao is one of several cases where Chinese-owned entities have become vital to the US supply chain. And he said supply chains could be disrupted at a moment’s notice if the Chinese government decides to change policy.

“This gives Chinese ownership, wherever they are, a part of the supply chain,” said Jorge Guajardo, the former Mexican ambassador to China who is now a partner at DGA Group. “Because they have shown that they are willing to use that ownership to apply pressure and prevent companies from getting any of the products they use and, in essence, stop production.”

Fuyao said its US operation is “an Ohio corporation based in Moraine, Ohio and is committed to local manufacturing operations and the creation of local employment opportunities,” and said it does not pose a risk to the supply chain.

Khanna warned about the potential dangers of involving China after a visit to Ultium Sales, an electric vehicle battery maker run by GM and LG. Trump has attracted foreign investment from many countries, including the United Arab Emirates, Qatar and Saudi Arabia.

“If Chinese investment is going to be predatory, we don’t want that,” Khanna said. “What the president needs to say to China is about opening up our markets there and making sure they’re not engaging in abusive, predatory behavior here.”

Another stop on Khanna’s tour was First Solar, an American solar panel manufacturer, where he was joined by Rep. Marcy Kaptur, D-Ohio.

The captain said it is a “habit” for China to dump cheap goods into other markets and warned against allowing Chinese-made vehicles into the US.

“If those borders are open to those $10,000 cars, it will destroy the industry,” he said. “To properly enforce our trade laws, the President had better have the best trade negotiator he has in manufacturing.”

And after a meeting with Khanna, Rep. Debbie Dingell, D-Mich., and Rep. Haley Stevens, D-Mich., at the General Motors plant in Romulus, Michigan, the lawmakers argued that China poses an existential threat to the broader auto industry.

“If we allow China to manufacture in America, that’s allowing them to come in,” Dingell said. “We can’t let that happen.”

In another interview with CNBC at the United Auto Workers Local 600 union hall, Dingell doubled down on his point.

“Sometimes you have to be smart enough not to make a deal,” he said. “By not making a deal, you are protecting your country.”