What is the automakers’ request to Congress regarding Chinese vehicles, software, and hardware in the U.S. market; why do they view a permanent ban as urgent given China’s subsidized global auto expansion and national security risks from connected vehicle technologies; which majo

Automakers are asking Congress to enact a permanent statutory ban—before year-end—on Chinese connected vehicles and associated Chinese software and hardware in the U.S., rather than leave the restrictions vulnerable to reversal by a future administration. 4

Why they say it is urgent

• The industry argues that Chinese manufacturers are deploying heavily subsidized vehicles globally, potentially gaining a foothold in the U.S. market through vehicles, components, or technology even if direct imports are restricted. 4
• Their national-security case is that connected cars rely on software, data systems, wireless links, and hardware that can collect sensitive data or be remotely accessed; the Biden-era rule already phases out Chinese connectivity software for 2027-model vehicles and hardware for model year 2030. 8
• A permanent law would codify and strengthen that regulatory approach, covering the import, sale, manufacture, and operation of Chinese or other foreign-adversary connected vehicles and Chinese-developed connected-vehicle technology. 2

Supporters

• The request came through the Alliance for Automotive Innovation, the principal U.S. auto-industry trade group representing major automakers. 6
• Reported members supporting the push include General Motors, Ford, Toyota, Volkswagen, Hyundai, Honda, Stellantis, and others represented by the Alliance. 6

Senate legislation

• The Senate Commerce Committee approved bipartisan legislation associated with the Connected Vehicle Security Act, proposed by Sen. Bernie Moreno, Republican of Ohio, and Sen. Elissa Slotkin, Democrat of Michigan, to toughen the existing executive-branch restrictions. 7
• The legislation would bar Chinese connected vehicles—including those from companies such as BYD, Chery, and SAIC Motor—from the U.S. market, and would prohibit Chinese-developed connected-vehicle software and data systems. 2
• Related House and Senate measures would prohibit entry of a connected vehicle that originates in, or was designed in, a covered foreign-adversary country, as well as certain vehicles made through joint ventures or by covered manufacturers. 13
• The committee bill also includes a proposed threshold barring U.S. sales by automakers more than 15% owned by Chinese entities. 10

Unresolved issues and collateral effects

• The 15% ownership test is unusually broad: it could prevent Mercedes-Benz from selling vehicles in the U.S. because Chinese investors hold nearly 20% of the company. 10
• It remains unresolved whether Congress will revise that ownership provision or create exceptions; therefore, the ultimate reach of a final law is uncertain. The evidence supplied does not establish a final legislative outcome.
• Polestar—majority-owned by China’s Geely—has already been forced from the U.S. market by the separate federal crackdown, illustrating how rules aimed at Chinese-connected technologies can reach non-Chinese-branded companies. 5

China’s response

• China has opposed the effort. Its embassy in Washington said China had eliminated foreign-investment market-access restrictions in manufacturing and remained open to international automakers sharing in its large market. 4