US automakers urge Congress to permanently ban Chinese connected vehicles
Major automakers operating in the United States have urged Congress to permanently ban by law the sale, import and production in the country of Chinese connected vehicles, as well as Chinese equipment and software.
Letter to Congress
As CNBC Top News reports, the Alliance for Automotive Innovation sent the relevant letter to congressional leadership. The organization represents the overwhelming majority of companies that sell vehicles on the US market.
Alliance CEO John Bozzella called on lawmakers to adopt the ban before the current session of Congress ends on January 3. According to him, Chinese automakers supply subsidized vehicles with connected software and hardware to global markets.
Bozzella said that there have not yet been such supplies to the United States, but described the scale and urgency of the threat as grounds for adopting a permanent ban. He also called for this policy to be enshrined in law.
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Legislative initiatives
The Alliance's call came amid bipartisan initiatives in the House of Representatives and the Senate concerning Chinese vehicles. In particular, the Senate Commerce Committee advanced a legislative initiative that, according to CNBC, could potentially lead to a ban on Mercedes-Benz in the United States because Chinese investors own nearly 20% of the German automaker.
Mercedes-Benz is a member of the Alliance for Automotive Innovation. In its letter, the organization said it was ready to work with lawmakers to develop a balanced policy that would allow all of its member companies to continue operating successfully in the United States.
Competition in the global market
Automakers are concerned that Chinese competitors, including BYD and Geely, are expanding their presence in global markets, undermining local production and vehicle prices. Chinese companies are increasing vehicle exports to Europe, as well as Central and South America.
Bozzella said that a permanent ban on Chinese vehicles, as well as equipment and software that he described as high-risk, should become the US national security response to China's strategy of dominating the global automotive industry.
