The Alliance for Automotive Innovation, a trade group representing American automakers, has urged Congress to implement a permanent ban on the sale, import, and manufacture of Chinese connected vehicles, hardware, and software in the United States. In a letter to senior lawmakers, the group’s president and CEO, John Bozzella, cited China’s alleged unfair trade practices, intellectual property theft, and pattern of surveillance as justification for the proposed ban. Bozzella emphasized that these behaviors are characteristic of China’s strategic approach to dominate global automotive manufacturing and critical supply chains, which he claims unfairly disadvantages non-Chinese automakers and threatens the U.S. automotive manufacturing sector.
The letter highlights the growing competition U.S. automakers face from Chinese rivals, such as BYD, which is exporting increasingly more low-cost vehicles worldwide. China has made significant strides in the electric vehicle (EV) market, being the world’s largest EV market and a growing exporter. The article points to a January trade deal between China and Canada as an example, where Geely Auto Group will be allowed to sell tens of thousands of EVs in Canada annually, with Canadian tariffs dropping from 100% to 6%. Bozzella also expressed concern that China is capturing market share in various regions, including 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. He urged Congress to enact the proposed ban before adjourning for the year, emphasizing the scale and urgency of the perceived threat. Source