Major US automakers urge lawmakers to impose a permanent ban on Chinese cars

 

A group of major US automakers has urged American lawmakers to impose a permanent ban on Chinese cars, warning of the risks they pose to the country's economic interests and national security, according to a Bloomberg report published Thursday.

The head of the Automotive Innovation Alliance sent a letter to Democratic and Republican leaders in the House and Senate, calling on Congress to ban Chinese-made internet-connected cars, along with their associated software and components, before the current legislative session ends in January.

John Bozzella, CEO of the Alliance, said in the letter, which was reviewed by Bloomberg, that Chinese automakers are already offering cars equipped with connected software and components in various markets around the world. He added that this has not yet happened in the United States, but the scale and speed of the threat necessitate enacting the ban before the end of the legislative session.

Growing Concerns

The request from the U.S. auto industry, the largest trade association representing the sector, follows a similar call issued by the alliance and other groups last March, reflecting growing concerns within the domestic industry about competition and the threat posed by Chinese automakers.

The alliance represents domestic automakers, including General Motors, as well as global companies operating in the United States such as Toyota Motor and Volkswagen.

Chinese companies like BYD and Geely Automobile are gaining an increasing share of the global automotive market, expanding their exports at a time when they face weak demand and fierce price competition in the domestic Chinese market.

Low-cost, technologically advanced Chinese electric vehicles have also begun appearing in Canada and Mexico, raising concerns among American automakers that these companies may soon target the US market.

Tariffs

Chinese cars are currently effectively excluded from the US market due to high tariffs, along with the US Commerce Department's ban on connected vehicle systems from countries Washington considers adversaries, including China.

Automakers want Congress to go further than the current restrictions by making the ban on Chinese cars and connected vehicle technologies from China a permanent law.

Several bills are already under consideration in Congress that could support these goals, including legislation introduced by a Senate committee last July.