Senate punts bill to permanently ban Chinese cars until after midterm elections

Senate lawmakers failed to pass a bill on Wednesday that would permanently ban Chinese cars from entering the United States, effectively delaying any action on the legislation until after the upcoming midterm elections. The bipartisan bill, proposed by Republican Senator Bernie Moreno of Ohio and Democratic Senator Elissa Slotkin of Michigan, aimed to prohibit the import, manufacturing, and sale of internet-connected vehicles, software, and hardware tied to China or other foreign adversaries, including Russia and North Korea.

The bill would also prevent ownership stakes of more than 15% in any car company by Chinese entities and would prevent future presidents from granting waivers to Chinese automakers. Supporters of the bill, including automakers and labor unions, argued that Chinese electric vehicles pose a threat to the U.S. auto industry due to their lower costs, high quality, and potential surveillance capabilities.

However, Senator Rand Paul of Kentucky raised objections, citing the 15% ownership limit as unfair to non-Chinese legacy brands like Mercedes-Benz, which has nearly 20% passive Chinese ownership. The delay in passing the bill is seen as a setback for bipartisan legislation that has garnered support from various stakeholders as the U.S. grapples with the growing reach of China’s auto industry and concerns over potential data collection.