U.S. Auto Lobby Group Urges Congress to Ban Chinese Connected Vehicles and Software-Hardware Before Year-End

The Alliance for Automotive Innovation, representing major automakers such as General Motors (GM-US), Ford (F-US), Toyota, and Volkswagen, has urged the U.S. Congress to quickly pass legislation that would permanently ban Chinese vehicles from entering the U.S. market before the end of this year’s legislative session.

In a letter addressed to Congress, John Bozzella, CEO of the Alliance for Automotive Innovation, pointed out that Chinese automakers are dumping subsidized vehicles equipped with connected software and hardware into global markets. While this phenomenon has not yet occurred domestically in the United States, given the scale and urgency of the threat, Bozzella urged Congress to legislate a permanent ban on 'Chinese vehicles, software, and hardware' before the adjournment of this year’s session, treating it as a matter of national security to counter China’s strategy of seeking dominance in global automotive manufacturing.

The primary justification for this ban stems from national security concerns, as Bluetooth, Wi-Fi, cellular networks, and satellite communication technologies embedded in vehicles could potentially collect sensitive data from drivers.

In response, the Chinese Embassy in the United States expressed opposition, emphasizing that Beijing has lifted foreign investment restrictions in manufacturing and continues to open its market to international automakers. It highlighted that brands such as Tesla, Buick, Toyota, and Ford are household names in China.

However, this proposed legislation currently faces significant hurdles. Although the Senate Commerce Committee approved a related strengthening-of-ban bill in July, Committee Chairman Ted Cruz noted that the draft provision stating that entities with over 15% ownership by Chinese capital would face a ban could result in Mercedes-Benz being prohibited from selling in the U.S., as the company holds nearly 20% passive Chinese equity. Therefore, he stated that the bill must be amended before it can proceed to formal legislative procedures.

Additionally, in June of this year, Polestar announced that the Trump administration is pressuring the electric vehicle manufacturer to cease selling vehicles in the U.S. starting with its 2027 models. The Sweden-based company is currently controlled by China’s Geely Holding Group.