New Delhi: Two members of the US House of Representatives on Monday will introduce legislation to toughen the US government’s ban on Chinese automakers from entering the American market, right before President Donald Trump heads to China for talks.
The legislation would codify a regulation imposed by the Biden administration that effectively bans all Chinese automakers from selling passenger vehicles in the USA and take other measures to prevent China from entering the USA light-duty market. Representatives John Moolenaar, a Republican and Debbie Dingell, a Democrat, are bringing the legislation after a version was introduced in the Senate last month by Republican Bernie Moreno and Democrat Elissa Slotkin.
The legislation would ban cars designed in China if they had advanced connectivity and vehicle software.
The Biden administration imposed heavy regulations that effectively ban Chinese automakers from selling passenger vehicles in the United States in January 2025, citing national security concerns linked to the vehicles having the potential to collect sensitive data from owners in America.
Back in March, auto trade groups representing all major car brands, which include Detroit Three, Volkswagen, Hyundai, and Toyota, parts makers, auto dealers and others urged the USA government to keep Chinese carmakers out, as “serious concerns about China’s ongoing efforts to dominate worldwide automotive manufacturing and to gain access to the USA market”.
They added that China would directly be a threat to “America’s global competitiveness, national security, and automotive industrial base”.
Chinese autos also face high tariffs, and yet US consumers have been more interested in the vehicles, according to recent surveys. Back in January, Trump had said he was open to Chinese automakers building vehicles in the United States. In a statement, the Chinese Embassy in Washington has urged the US to “stop overstretching the concept of national security”. Further, it said they should stop “discriminatory and exclusionary measures” and give them a proper, transparent and non-discriminatory business platform.
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