The Alliance for Automotive Innovation, the main lobbying group for the American auto industry, has called on Congress to turn temporary restrictions on Chinese connected vehicles into permanent law. In a letter to congressional leaders, the organisation — whose members include GM, Ford, Toyota, BMW, Hyundai, Honda, Volkswagen, Mercedes, Kia and Volvo — urged lawmakers to pass legislation before the current session ends on January 3.
The group wants a statutory ban on Chinese connected cars along with the hardware and software that supports them. At present, Chinese vehicles are effectively locked out of the US market by steep tariffs and by Commerce Department rules targeting connected-vehicle technology linked to China. Those measures have already forced Polestar, the Chinese-owned electric vehicle brand, to withdraw from the American market. But the Alliance argues that regulatory defences could be reversed by a future administration, and that only an act of Congress can provide lasting certainty.
«Right now, Chinese automakers are dumping subsidized vehicles with connected software and hardware around the world», wrote John Bozzella, the Alliance’s chief executive, in the letter. He framed the issue in both economic and national security terms. «China is capturing market share in Europe, Australia, Southeast Asia, Mexico and South America with vehicles capable of collecting, processing and transmitting sensitive vehicle and consumer data to the Chinese Communist Party», Bozzella added.
The push for permanent restrictions is not without complications for the industry itself. A proposal that advanced through a Senate committee in July could inadvertently catch Mercedes in its net, because Chinese investors own nearly 20 percent of the German carmaker — more than the draft legislation would allow. Volvo, another Alliance member, is wholly owned by China’s Geely. The Alliance says it wants a balanced solution that will not accidentally penalise its own members.
While American manufacturers seek to bar Chinese competition at home, Chinese brands are expanding elsewhere. Xiaomi, the technology company that has moved into electric vehicles, will begin selling cars in Europe next year and has already signed agreements with eight German dealer groups. It joins BYD, Xpeng, Leapmotor and Nio in pushing deeper into a European market that has also erected trade barriers against Chinese EVs, though with limited effect. More than one in ten cars sold in Europe is now Chinese-built.
Canada is moving in the opposite direction to the United States. Ottawa recently opened its second import period for Chinese electrified vehicles, permitting up to 33,397 units after unused capacity rolled over from the first allocation. BYD, Chery and Geely models are reportedly undergoing Canadian certification. The contrast highlights a growing divergence in North American policy towards Chinese automotive imports.
Even within the American industry, there is scepticism about whether a permanent ban can hold indefinitely. Ford’s chief executive has told staff to expect Chinese manufacturers to reach American shores within five to ten years, regardless of current legislative efforts. For now, however, the Alliance is pressing Congress to install what one industry observer described as a deadbolt on the door — and to throw away the key before the current session concludes.