U.S. Automakers Urge Congress to Permanently Ban Imports of Chinese Connected Vehicles

[Financial News] Major automakers operating in the United States are stepping up pressure on Congress to permanently ban the sale, import and manufacture in the United States of Chinese connected vehicles and related hardware and software.
CNBC, a U.S. business news network, reported on the 3rd local time that the Alliance for Automotive Innovation (AAI), which represents most vehicles sold in the United States, had sent a letter to congressional leaders urging them to pass the legislation before the session ends on January 3.
In the letter, AAI CEO John Bozzella said, "Chinese automakers are currently using subsidies to push vehicles equipped with connected software and hardware into markets around the world." He emphasized, "Although this has not yet fully materialized in the United States, given the scale and urgency of the threat, Congress must draft and enact a law banning Chinese vehicles and related software and hardware before this year's session ends."
The demand comes ahead of the midterm elections in November, raising questions about whether it will affect Congress's legislative momentum. As bipartisan efforts to regulate Chinese vehicles continue, concerns have also been raised that legislation being pursued by the Senate Commerce Committee could block Mercedes-Benz from entering the U.S. market, given that Chinese shareholders hold approximately 20% of the German automaker.
AAI, which counts Mercedes-Benz among its members, said in the letter, "We hope to work with the legislative branch to develop balanced policies that allow all of our members to continue succeeding and growing in the United States."
The global auto industry has expressed deep concern that Chinese competitors such as BYD and Geely Automobile are sharply increasing exports to Europe and Latin America, disrupting global markets with low-priced products and threatening domestic production.
Bozzella added, "Enacting a permanent ban in the 119th Congress on Chinese vehicles and high-risk hardware and software would send a bipartisan message that the U.S. government is responding decisively, on national security grounds, to China's strategy of monopolizing global automobile manufacturing."
[email protected] Yoon Jae-jun Reporter