Senate Committee Advances Bill Targeting Chinese Cars and Technology
A U.S. Senate committee has taken a significant step towards banning vehicles and connected technology from countries deemed a concern, including China. This move could reshape the automotive landscape in the United States, impacting both consumers and manufacturers.
The proposed legislation, introduced by U.S. Senators Bernie Moreno, R-Ohio, and Elissa Slotkin, D-Michigan, aims to curb the sale of vehicles and components linked significantly to nations such as China. The senators argue that connected vehicles, which are capable of transmitting data and being remotely controlled, present “substantial economic and national security risks” in the U.S. More information on the measure can be found here.
Despite advancing the bill, Senate Commerce, Science and Transportation Committee Chairman Ted Cruz, R-Texas, expressed skepticism about its future. He highlighted concerns over a clause restricting ownership by covered countries to 15%, which could inadvertently affect companies like Mercedes-Benz. Cruz suggested amending the bill to involve the Committee on Foreign Investment in the United States (CIFUS) in assessing ownership risks, regardless of the percentage of foreign control.
Cruz also noted that the 15% ownership cut-off might be perceived as “retaliation” by the UAW for its unsuccessful attempt to unionize Mercedes-Benz plants in Alabama. The bill was moved forward without a formal roll call vote.
The legislation outlines that, starting January 1, 2027, the import or sale of connected vehicles from China, North Korea, Russia, or Iran, or from manufacturers with more than 15% ownership by these countries, will be prohibited. The complete text of the legislation is available here.
Additionally, the bill targets software from 2027 and hardware from 2030, including semiconductor chips essential for modern vehicles. However, the Commerce Department retains the ability to waive these prohibitions on a case-by-case basis, with a 60-day notification period to Congress.
Critics warn that these restrictions could limit consumer options and hinder innovation, especially with China’s advances in electric vehicle technology. Opponents argue that this may inadvertently give an edge to U.S. automakers. Nonetheless, Slotkin emphasized the security concerns, stating, “Chinese cars are surveillance packages on wheels, with the ability to collect on American citizens and transmit that data back to Beijing.”
The legislation has garnered support from UAW President Shawn Fain and all three major Detroit automakers. General Motors affirmed its competitive stance, while Ford and Stellantis expressed readiness to collaborate with Congress on this issue.
Original Story at www.freep.com