Major automakers in the United States are pressing Congress to pass legislation that would permanently block Chinese vehicles and automotive technology from the American market.
The Alliance for Automotive Innovation, which represents major manufacturers including General Motors, Ford, Toyota, Volkswagen, Hyundai, Honda and Stellantis, urged lawmakers to approve the legislation before the end of the year.
Alliance CEO John Bozzella said the rapid expansion of Chinese automakers in international markets, supported by government subsidies, posed a growing threat to the US automotive industry and national security.
“Chinese automakers are dumping subsidized vehicles with connected software and hardware around the world,” Bozzella said in a letter to Congress seen by Reuters.
He said Chinese vehicles had yet to establish a major presence in the US but warned that the scale and speed of their global expansion required urgent action.
The Senate Commerce Committee approved legislation in July that would strengthen existing restrictions on Chinese automakers. The bill, however, still faces hurdles before it can secure final passage.
The measure, sponsored by Republican Senator Bernie Moreno of Ohio and Democratic Senator Elissa Slotkin of Michigan, would codify restrictions introduced by the Biden administration that effectively prevent Chinese automakers from selling or manufacturing passenger vehicles in the US.
The proposed legislation also targets connected-vehicle technologies, including Bluetooth, Wi-Fi, cellular connectivity and some satellite communications systems, amid concerns that such technology could allow vehicles to collect sensitive data on American users.
But the bill has drawn concerns from some lawmakers over its potential impact on non-Chinese automakers with significant Chinese investment.
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Senate Commerce Committee Chairman Ted Cruz said a provision targeting companies with more than 15% Chinese ownership could prevent Mercedes-Benz from selling vehicles in the US because Chinese investors hold a nearly 20% passive stake in the German automaker.
Cruz said the legislation would require changes before it could become law.
China has rejected efforts to restrict its automakers from accessing the US market.
The Chinese embassy in Washington said Beijing had abolished restrictions on foreign investment in manufacturing and remained open to international carmakers.
It cited Tesla, Buick, Toyota and Ford as examples of foreign automotive brands that have benefited from access to the Chinese market.
The push for tighter restrictions comes as Chinese manufacturers, including BYD, Chery and SAIC Motor, expand aggressively into global markets, intensifying concerns in Washington about China’s growing influence over the automotive industry.
About the Author
Cecilia Attah is a tech analyst with a degree from Benue State University. She covers tech news and startups at TechRegard with a focus on how technology is transforming Africa and shaping the global landscape.
