American automakers are calling on Congress to permanently prohibit the sale, import, and production of Chinese connected vehicles, hardware, and software in the United States. In a letter to key lawmakers, the Alliance for Automotive Innovation — a trade group representing major U.S. automakers — expressed concerns over what it describes as unfair trade practices by China, including intellectual property theft and surveillance risks. The group’s president and CEO, John Bozzella, argued that China is aggressively pursuing dominance in the global automotive industry and critical supply chains, using policies that put non-Chinese automakers at a disadvantage and threaten the U.S. automotive sector.
The U.S. automotive industry is facing growing pressure from Chinese competitors like BYD, which is expanding its reach by exporting low-cost vehicles around the world. China has emerged as the largest market for electric vehicles (EVs) and is increasingly becoming a major exporter in this sector. For example, under a recent trade agreement with Canada, China’s Geely Auto Group will be permitted to sell tens of thousands of EVs in Canada each year, with tariffs on these vehicles dropping significantly from 100% to 6%. This shift reflects China’s growing influence in international markets.
Bozzella highlighted that Chinese automakers are gaining market share in regions such as Europe, Australia, Southeast Asia, Mexico, and South America. He noted that these vehicles are equipped with technology capable of collecting, processing, and transmitting sensitive data — including vehicle performance and consumer information — back to the Chinese government. While such practices have not yet been observed in the U.S., the group warns that the scale and urgency of the threat demand immediate action.
The Alliance for Automotive Innovation is urging Congress to pass legislation banning Chinese vehicles, software, and hardware before the legislative session ends this year. They want this policy to become permanent law, arguing that it is essential to protect national security, intellectual property, and the competitiveness of the U.S. automotive industry in the face of what they describe as an increasingly aggressive Chinese presence in global markets.
U.S. Automakers Push for Ban on Chinese Vehicle Sales
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