Auto Alliance Urges US Congress to Ban Chinese Cars

The Alliance for Automotive Innovation (AAI) has urged the US Congress to enact a ban on Chinese vehicles and their connected software and hardware before the legislative session ends this year. The group, which represents General Motors, Ford, Toyota, Volkswagen, Hyundai, Honda, Stellantis, and other major automakers, made the plea in a letter seen by Reuters, citing the "scale and urgency" of the perceived threat.

AAI president and CEO John Bozzella wrote that Chinese automakers are currently "dumping subsidised vehicles with connected software and hardware around the world." He argued that while this has not yet happened inside the United States, Congress must act preemptively. Passing the proposed legislation, he stated, would send a clear message that China's strategy to dominate global automotive manufacturing will be met with a national security response.

Proposed Legislation and Scope

The push centers on the Connected Vehicle Security Act, which passed the Senate commerce committee on July 22. This bill proposes a comprehensive ban on the import, production, sale, and resale of vehicles from manufacturers where Chinese shareholders hold more than 15% ownership. The pending legislation would apply this restriction across the entire automotive supply chain within the United States.

In a previously unreported July letter, the AAI urged the committee to explicitly prohibit the Commerce Department from granting specific authorizations to named Chinese carmakers. The alliance listed BYD, Chery, SAIC Motor, and others it described as subsidized by the Chinese Communist Party.

Regulatory Actions and Industry Impact

Separate legislative action is also underway. Ohio Republican Bernie Moreno and Michigan Democrat Elissa Slotkin proposed a bill to codify an existing Biden administration regulation. That regulation effectively bans all Chinese carmakers from selling or building passenger vehicles in the US and aims to block China's entry into the light-duty vehicle market.

The regulatory environment has already directly impacted automakers with Chinese ties. In June, Polestar, which is majority-owned by China's Geely, announced it would stop selling cars in the US from the 2027 model year. The Bureau of Industry and Security, an agency of the US Commerce Department, decided not to grant the Sweden-based carmaker an authorization under the Connected Vehicle Rule.

Polestar's sister brand, Volvo, which is also owned by Geely, received an exemption in May. However, Volvo stated it must still meet all the rule's underlying requirements. The AAI's letter shows a growing consensus among legacy automakers that legislative action is necessary to secure the domestic production landscape against foreign competition viewed as state-subsidized.

The alliance's call to action frames the issue as one of immediate national security for the American automotive industry. It focuses squarely on production, manufacturing, and the integrity of the plant-floor network against external components.