White House National Economic Council Director Lael Brainard stated on Monday that United States President Joe Biden's goal is to introduce measures that would stop "a flood of unfairly, underpriced autos" made in China that could negatively influence the capacity of the North American country's carmaking sector to "compete fairly on a global stage."

"China is flooding global markets with a wave of auto exports on the back of their own overcapacity. We saw a similar playbook in the China shock of the early 2000s that harmed our manufacturing communities, and this administration is determined we will not see a second China shock," Brainard remarked at an event at the Detroit Economic Club.

Brainard's comments came after the Department of Commerce recommended a ban on the use of Chinese software and hardware in cars imported into the US.