Sens. Bernie Moreno (R-Ohio) and Elissa Slotkin (D-Mich.) introduced bipartisan legislation Wednesday to harden a U.S. ban on Chinese automakers entering the American market, weeks before President Donald Trump is scheduled to travel to China for talks with President Xi Jinping.
Senators Move To Lock In China Auto Ban
The bill from the two U.S. senators would codify a Biden administration regulation that effectively bars Chinese automakers from selling passenger vehicles in the United States. It would also broaden restrictions to cover vehicles, parts and software made in China or in partnership with Chinese firms, as well as other adversarial nations.
The Commerce Department issued a rule last year restricting connected vehicles and certain parts from China and Russia, citing national security risks. Moreno and Slotkin said Congress should turn that rule into law so a future administration cannot easily reverse it. More than 70 House Democrats also urged Trump this week to block Chinese automakers from the U.S. market before his meeting with Xi.
Trump-Xi Summit Sharpens Lawmakers' Concerns
Trump, however, suggested in January that he was open to Chinese automakers building vehicles in the United States, saying at the Detroit Economic Club that he welcomed companies that would create American jobs.
Slotkin told NBC News on Wednesday that the Trump-Xi summit prompted the timing of the bill, saying lawmakers are "watching very closely what deals come out of that summit." Moreno said the measure would expand the Commerce Department's connected vehicle rule across the auto supply chain and prevent Chinese cars from entering the United States, even temporarily. "So we are hermetically sealing the U.S. market from the Chinese auto industry," he said.
Moreno and Slotkin said the bill is needed to protect national security and U.S. automakers from being undercut by state-backed Chinese rivals. Slotkin earlier warned that Chinese-connected vehicles could collect video, 3D mapping and geolocation data and called them a "driving surveillance package."
Chinese EV Makers Expand Beyond U.S. Market
The push comes as the war in Iran has driven up fuel prices, potentially strengthening demand for electric vehicles.
A BBC report last week highlighted that BYD Co. Ltd. (OTC:BYDDY), China’s largest electric vehicle maker, said it can keep expanding globally without relying on the U.S. market, as demand rises in Asia, Europe and Latin America.
Industry analyst Lei Xing also recently described Chinese automakers' international expansion as a "natural evolution" amid rising domestic pressure and surging vehicle exports.
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