New US Bill Proposes Chinese EV Makers Ban in the American Market
Electronic vehicle manufacturers from China are experiencing serious challenges entering the US market. According to TechCrunch, a new bill seeking a Chinese EV Makers ban in the US has been introduced by a US representative.
The new bill comes amidst heightened trade tensions between China and the US. These tensions have been complicated by the decision taken by the Biden administration to increase import duty on Chinese-made EVs by 75%.
The legislation, ‘Connected Vehicle National Security Review Act’ was introduced by U.S Rep. Elissa Slotkin. It is aimed at establishing formal security reviews on electronic vehicles that have been built by the Chinese and companies operating in other countries of concern. If passed, this law would pave the way for a Chinese EV Makers ban, effectively blocking the importation of such vehicles if they present a national security threat in the US.
Warning to Congress
A former Pentagon Official and CIA analyst, Slotkin has issued multiple warnings about threats that Chinese-made EV vehicles pose to Congress. In a speech delivered to Congress, Slotkin explained measures that the Chinese government has taken to subsidize the automobile industry. These measures are aimed at selling cheap, advanced connected vehicles fitted with sensors such as radar, cameras, and lidar that can gather data and send it back to Chinese authorities.
“If allowed into our markets, Chinese connected vehicles offer the Chinese government a treasure trove of valuable intelligence on the United States, including the potential to collect information on our military bases, critical infrastructure like the power grid and traffic systems, and even locate specific U.S. leaders should they so choose,” Slotkin said in a statement.
Security First
Chinese EV makers have already made inroads into the European market. This is yet to happen in the US. The objective of the US New House Bill Chinese EV makers is to regulate the market and ensure that the American market isn’t flooded with cheap, smart vehicles.
“China owns a fast-growing share of the connected auto market in Europe and Mexico, so now is the time to make sure our defenses are up, before these vehicles enter the U.S. market,” Slotkin added.
Impact of the Ban
The Chinese EV makers’ conflict is already having an impact in the US. If it becomes law, the Connected Vehicle National Security Review Act will regulate EVs as well as autonomous vehicles (AVs). Several AV firms that have links with China already have permits to test their vehicles in California. These include Waymo, WeRide, and Pony.ai.
Just last week, some of the provisions in the bill found their way into the US annual defense spending bill. These include the Chinese EV Makers ban at military bases in the US. Procurement of Chinese lidar equipment by the Defense Department was also prohibited in the spending bill.
