US Auto Group Urges Congress to Ban Chinese Vehicle Sales Over Security and Competition Concerns

American automakers calls Congress to block Chinese car sales/Image: Reuters

A major US auto trade group is calling Congress to permanently ban Chinese vehicles in the country, warning that growing competition could threaten American auto production and raise data-security concerns. The Alliance for Automotive Innovation, which represents most automakers selling vehicles in the United States, requested in a letter to congressional leaders on Thursday. The group wants lawmakers to approve the restrictions before the current congressional session ends. Alliance president and CEO John Bozzella said Chinese companies benefit from government support while expanding into overseas markets. “Right now, Chinese automakers are dumping subsidized vehicles with connected software and hardware around the world,” Bozzella wrote in the letter. Chinese manufacturers, including BYD and Geely, have expanded exports to Europe, Australia, Southeast Asia, Mexico and countries across Central and South America. Their lower-priced vehicles have increased competition for established automakers and raised concerns about pressure on domestic manufacturing. Bozzella accused China of using industrial and manufacturing policies to disadvantage foreign competitors. He also cited alleged intellectual property theft and concerns that connected vehicles could collect and transmit sensitive information about vehicles and their users. “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,” Bozzella wrote. Chinese automakers have made significant gains in electric vehicles. China is the world’s largest EV market and has become a major exporter as manufacturers seek growth outside the country. Bozzella said Chinese connected vehicles could gather consumer and vehicle data that might be accessible to Chinese authorities. He urged Congress to act before Chinese automakers establish a substantial presence in the US market. “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,” he wrote. The issue is already under consideration in Congress, where lawmakers from both parties are examining proposals to limit Chinese influence in the US automotive sector. Bozzella said a permanent ban approved by the current Congress would send a broader message about Washington’s response to China’s expansion in the global automotive industry. “Enacting a permanent ban on Chinese vehicles and high-risk hardware and software in the 119th Congress will send a clear and bipartisan message that China’s strategy to dominate global automotive manufacturing will be met with a national security policy response from the American government,” he wrote. The proposal comes as lawmakers face a crowded political calendar, including November’s midterm elections, which could affect the pace of action on China-related legislation.