Major automakers are urging Congress to permanently ban Chinese connected vehicles

The Alliance for Automotive Innovation, representing key automakers, has called upon Congress to pass legislation prohibiting Chinese vehicles from entering the US market by the year's end. The group believes Chinese automakers are flooding the global market with subsidized vehicles equipped with advanced software and hardware, a threat that has yet to reach US shores but demands immediate action.

John Bozzella, the CEO of the Alliance, wrote a letter to Congress detailing the issue. He urges swift enactment of a ban on Chinese vehicles, software, and hardware before the legislative session ends. Despite a Senate Commerce Committee's recent approval of legislation to strengthen the ban on Chinese automakers entering the US market, it still has obstacles to overcome for final approval.

Bozzella stated that passing the bill would send a strong, bipartisan message that China's strategy to dominate global automotive manufacturing will face a national security response from the American government. The Chinese embassy has not yet commented on the matter but maintains opposition to US efforts to ban Chinese vehicle exports.

In July, the Alliance had urged the committee to explicitly forbid the Commerce Department from granting specific authorizations to Chinese automakers, such as BYD, Chery, and SAIC Motor, which are subsidized by the Chinese Communist Party to manufacture, sell, or import connected vehicles to the US.

Senator Bernie Moreno of Ohio and Senator Elissa Slotkin, a Democrat from Michigan, proposed legislation to codify a regulation initiated by the Biden administration. This regulation effectively bans all Chinese automakers from selling or building passenger vehicles in the US and takes further steps to prevent China from entering the US light-duty market.

However, a provision in the bill that would ban companies with over 15% ownership by Chinese entities would prohibit Mercedes-Benz from selling vehicles in the US due to its substantial, albeit passive, Chinese investment. Senator Ted Cruz, the chair of the Senate Commerce Committee, stated that the bill requires modifications before it can become law.

In June, Polestar announced that the Trump administration had forced the electric-vehicle manufacturer to cease selling vehicles in the US starting from the 2027 model year. The Swedish company is majority-owned by China's Geely Holding. Bluetooth, Wi-Fi, cellular connectivity, and certain satellite communications technologies are subject to regulations based on national security concerns due to the ability of vehicles to gather sensitive data on American owners.