Auto Industry Lobby Group Calls for Ban on Chinese Vehicles in U.S.

One of the U.S.’s most powerful auto industry lobby groups has written to Congress calling for a ban on Chinese vehicles from America’s roads.

In a letter addressed to the leaders of the House of Representatives and Senate, John Bozzella, the president and CEO of the Alliance for Automotive Innovation, which brings together the biggest names in the American car sector, appealed for a “permanent ban” to be introduced before the 119th Congress concludes on January 3, 2027.

Bozzella argued for an end to “the sale, import and manufacture of Chinese connected vehicles, hardware and software” on the basis that the superpower’s manufacturing industry is “rooted in a well-documented pattern of unfair trade, subsidies, intellectual property theft and surveillance”.

“This behavior is a feature of the Chinese approach and especially acute when it comes to China’s strategy to dominate global automotive manufacturing and critical supply chains,” he said.

“Right now, Chinese automakers are dumping subsidized vehicles with connected software and hardware around the world.

“China is capturing market share in Europe, Australia, Southeast Asia, Mexico and South America with vehicles capable of collecting, processing and transmitting sensitive vehicle and consumer data to the Chinese Communist Party.

“This hasn’t happened inside the U.S. yet, but given the scale and urgency of this threat, we urge you to enact a Chinese vehicle, software and hardware ban before adjourning this year and make this policy the law of the land.”

The Senate Commerce, Science and Transportation Committee approved legislation in July that, if passed, would ban manufacturers with more than 15 percent Chinese ownership from selling vehicles in the U.S. – a move with consequences for Germany’s Mercedes-Benz, which is 20 percent Chinese-owned and also an alliance member.

An equivalent bipartisan measure has also been put forward in the House by two Michigan members of Congress, Democratic Rep. Debbie Dingell and Republican Rep. John Moolenaar, seeking to protect the interests of Detroit, America’s famed Motor City.

The appeal comes at an awkward moment for U.S.-China relations. President Donald Trump followed up the trade war he started in his first term by escalating tensions significantly in his second by imposing high tariffs on Chinese exports, which reached 157 percent at one stage, causing Beijing to respond aggressively.

Trump nevertheless took part in a whirlwind state visit to the Chinese capital in May, where he was warmly welcomed by Premier Xi Jinping, who is due to arrive in Washington later this month for a return leg.

In the interim, the president has risked further alienating China by delivering a primetime televised address from the Oval Office in which he accused the country of attempting to meddle in the 2020 presidential election to Joe Biden’s advantage, without providing evidence.

China’s Foreign Ministry spokesman Lin Jian strongly denied Trump’s allegations, calling them “malicious smears” that have “long been proven to be groundless.”