The U.S. government has taken another bold step in its escalating efforts to keep Chinese-made electric vehicles (EVs) off American roads. Following a recent tariff hike on Chinese EV imports, the U.S. Commerce Department has now proposed a ban on certain Chinese and Russian automotive hardware and software, citing national security concerns. If implemented, this rule could effectively close the door on China-made EVs in the U.S. market.
Set to potentially take effect as early as 2026, the proposed rule targets the technology that powers modern cars, including internet-connected cameras, GPS systems, and microphones. According to Commerce Secretary Gina Raimondo, the risk lies in the potential for foreign adversaries to exploit connected car technology, posing a serious threat to both national security and individual privacy. “It doesn’t take much imagination to understand how a foreign adversary with access to this information could pose a serious risk,” Raimondo said.
The proposed ban comes amid a surge in Chinese auto exports, which grew by over 30% in the first half of this year alone. With China ramping up production of affordable electric vehicles for the global market, U.S. and European officials are concerned about the impact on domestic car manufacturers. In response, the U.S. has made it more difficult for Chinese automakers to sell their vehicles stateside, but China has found ways to counter these barriers by establishing manufacturing bases in regions like Eastern Europe and Mexico.
However, the proposed ban is more focused on security than economic competition. Earlier this year, Raimondo raised the alarming scenario of foreign actors potentially disabling Chinese-connected vehicles en masse on American roads. While this hypothetical may sound far-fetched, the proposed rule is seen as a preemptive measure to safeguard against future risks, even though Chinese and Russian firms currently play a minimal role in the U.S. automotive market.
Steve Man, global head of auto research at Bloomberg Intelligence, agrees that the move is primarily defensive. “PRC and Russian automakers do not currently play a significant role in the U.S. auto market,” he notes, underscoring the preventive nature of the proposed ban.
Yet for Chinese automakers hoping to break into the U.S. market, this rule would be a devastating blow. “If the 100 percent tariffs on made-in-China EVs were a wall, the proposed ban on connected vehicles would be a death sentence for China EV Inc. aiming to enter the U.S.,” says Lei Xing, a former chief editor at China Auto Review. Xing predicts that under this rule, the chances of seeing Chinese EVs on U.S. roads in the next decade are “nearly zero.”
While the Biden administration insists that national security is the primary concern, this proposed ban could further isolate Chinese automakers from one of the world’s largest auto markets. It also signals a significant shift in how the U.S. approaches foreign technology in its increasingly connected and tech-driven automotive industry. Should the rule be finalized, it would reshape the global electric vehicle landscape and make it nearly impossible for Chinese-made EVs to gain a foothold in the United States.
Read more at Wired.
