Automakers Want Congress to Ban Chinese-Made Cars, Citing Data Privacy

The Alliance for Automotive Innovation, a lobbying group for the automotive industry, has called for a complete ban on Chinese-made cars, parts, and software. John Bozzella, the CEO and president of the Alliance for Automotive Innovation, has written a letter to congressional leaders urging such a ban. The letter highlights China's history of unfair trade practices, intellectual property theft, and surveillance as reasons for the ban.

The letter cites a bipartisan push in Washington to implement this ban, including the "Connected Vehicle Security Act of 2026." This legislation would prohibit the importation, manufacturing, sale, resale, or introduction into US interstate commerce of connected vehicles and related components from China, Russia, Iran, or North Korea. Bozzella emphasized the urgency of enacting this ban before the end of the legislative session for the year.

The automotive industry has faced privacy concerns in the past. In 2025, the Federal Trade Commission ordered General Motors to refrain from selling driver data for five years. A Consumer Reports investigation from that year found that nearly every automaker collects and shares data on driver behavior. Chinese automakers, especially those producing electric vehicles, have gained popularity worldwide due to their affordability.

Factors contributing to low prices include significant government subsidies. However, Chinese automakers are currently blocked from selling to US consumers due to high tariffs.

The Alliance for Automotive Innovation believes a permanent ban would send a clear message to China, demonstrating that the U.S. government is responding to its strategy of dominating global automotive manufacturing with a national security policy.