Business & Finance
Automakers ask Congress for permanent ban on Chinese connected vehicles
A leading automotive trade group wants federal lawmakers to prohibit Chinese vehicle imports, hardware, and software before the legislative session concludes.
The short version
- The Alliance for Automotive Innovation urged congressional leaders to permanently ban the sale, import, and manufacturing of Chinese connected vehicles and components in the U.S.
- Automakers cited economic and national security concerns, arguing that state-subsidized Chinese manufacturers are undercutting prices globally.
- A key remaining question is how Congress will craft the legislation without penalizing established members with significant Chinese ownership stakes, such as Mercedes-Benz.
Key facts
- The Alliance for Automotive Innovation sent a letter asking Congress to ban the domestic sale, manufacturing, and import of Chinese connected vehicles, software, and hardware before the current session ends on January 3.[CNBC]
- Alliance CEO John Bozzella stated that Chinese automakers are currently dumping subsidized connected vehicles in international markets like Europe and Latin America.[CNBC]
- Existing legislation advanced in the Senate Commerce Committee could affect Mercedes-Benz because Chinese investors hold nearly 20% of the German company.[CNBC]
- The trade group noted it seeks to work with lawmakers to balance security measures so that foreign-based members with minority Chinese investment can continue operating in the U.S.[CNBC]