Chinese cars face US ban over spying fears

Washington: A bipartisan group of US lawmakers has introduced legislation to ban Chinese-linked connected vehicles, software and hardware from American roads, citing national security risks, unfair trade practices and threats to the domestic auto industry.

The proposed “Connected Vehicle Security Act” was introduced on Sunday by Congressman John Moolenaar, a Republican from Michigan and chairman of the House Select Committee on China, along with Democratic Congresswoman Debbie Dingell.

“The American auto industry is vital for jobs, national security, and the future of America’s manufacturing base,” Moolenaar said in a statement announcing the bill.

“China cheats in every industry, and in autos it is overproducing vehicles and components, and selling them for cheap in hopes they will put our companies out of business,” he said.

Moolenaar also accused some Chinese firms of using “slave labor” to gain a pricing advantage.

“In some cases, Chinese companies, including CATL and BYD, use slave labor to undercut the fair wages of hardworking Americans. These companies should not be allowed to do business in America, and their products shouldn’t be in our cars or threatening our infrastructure,” he said.

Dingell said the legislation was aimed at protecting American manufacturing jobs and preventing a repeat of past industrial decline.

“This bipartisan legislation will ban Chinese vehicles from coming into our country and undercutting our workers through massive government subsidies, unfair trade practices, and slave labor,” she said.

“I am not interested in repeating the mistakes that hollowed out manufacturing communities across this country while politicians told workers globalization would somehow magically work itself out,” Dingell added.

The bill would prohibit the importation, manufacture, sale or introduction into interstate commerce of connected vehicles originating from or controlled by “covered foreign adversary countries” beginning January 1, 2027.

The legislation specifically targets China, Russia, North Korea and Iran.

It would also ban connected vehicle software linked to those countries starting in 2027, while restrictions on connected vehicle hardware would take effect from January 1, 2030.

According to the bill, connected vehicles collect and transmit “vast amounts of sensitive data, including geolocation, operational, and personal information,” and can potentially be remotely accessed or controlled.

The legislation said China exports nearly 8 million vehicles annually, “approximately twice the volume exported by any other country”.

The proposal directs the Secretary of Commerce to establish compliance mechanisms, including declarations of conformity, advisory rulings and waiver procedures for industry participants. Violations could trigger civil penalties of at least $1.5 million per transaction.

The bill reflects growing bipartisan concern in Washington over Chinese technology entering critical sectors of the US economy, particularly electric vehicles, batteries and advanced telecommunications. Chinese automakers, including BYD, have rapidly expanded globally in recent years, raising alarms among US lawmakers over cybersecurity, supply chain dependence and industrial competition.

IANS