Industry Weighs in on Proposed Rule to Bar Chinese Vehicles

A U.S. Commerce Department proposal to effectively bar Chinese vehicles from the U.S. is a good-faith effort toward national security but could complicate domestic carmakers’ business, according to one auto industry advocate.

The proposed rule, announced by the Biden administration on Monday, would ban the sale or import of connected vehicles with technology from China and Russia, as well as the technologies themselves.

“Chinese automakers are seeking to dominate connected vehicle technologies in the United States and globally, posing new threats to our national security, including through our supply chains,” a White House statement said. “The Biden-Harris Administration is committed to ensuring that our automotive supply chains are resilient and secure from foreign threats.”

The Alliance for Automotive Innovation, an industry trade group and lobbyist, said the proposal’s aim is shared by automakers and resulted from a “thoughtful, thorough and consultative process” but that the lead time it would afford, if approved, might be too short for some automakers.

"There's actually very little technology - hardware or software - in today's connected vehicle supply chain that enters the U.S. from China. But this rule will require auto manufacturers in some cases to find alternate suppliers," said a statement by the alliance's president and CEO, John Bozzella.

“I’ve said this in other contexts, but it applies here too,” he said. “You can’t just flip a switch and change the world’s most complex supply chain overnight. It takes time.”

Bozzella said the alliance will follow the rule-making process and offer insight along the way “that reflects industry realities and achieves our shared national security goals.” 

The Biden announcement pointed out that, “Now more than ever, vehicles are directly connected into our country’s digital networks,” and that such connectivity “creates opportunities to collect and exploit sensitive information” about U.S. infrastructure and the vehicles themselves.

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