Top Automakers Urge Congress to Permanently Ban Chinese Cars

A coalition of major automakers urged U.S. lawmakers to permanently ban Chinese vehicles, citing the threats they pose to domestic economic and national security interests.

In a letter to Democratic and Republican leadership of both the House of Representatives and Senate, the head of the Alliance for Automotive Innovation said lawmakers should ban Chinese connected cars as well as related vehicle software and hardware from the US before the current legislative session ends in January.

“Right now, Chinese automakers are dumping subsidized vehicles with connected software and hardware around the world,” John Bozzella, the group’s chief executive officer, said in the letter, which was seen by Bloomberg News. “This hasn’t happened inside the US yet, but given the scale and urgency of this threat, we urge you to enact a Chinese vehicle, software and hardware ban before adjourning this year.”

The call by the U.S. auto industry’s biggest trade association — echoing a similar plea made by the alliance and other auto groups in March — underscores mounting concerns in the domestic industry about the threat posed by China’s automobile makers. The alliance represents domestic carmakers including General Motors Co. as well as overseas giants Toyota Motor Corp. and Volkswagen AG.

Companies such as BYD Co. and Geely Automobile Holdings Ltd. are rapidly gaining market share around the world, churning out exports as they contend with sluggish demand and cutthroat pricing in their domestic market.

Cheap, tech-laden Chinese EVs are also appearing in both Canada and Mexico, amplifying concerns among US auto executives that they could soon seek inroads in America.

Currently, Chinese vehicles are effectively shut out of the US market by steep tariffs and a Commerce Department ban on so-called connected vehicle systems from US adversaries including China.

Carmakers want Congress to go a step further, by enshrining into law a permanent ban on Chinese cars and connected vehicle technologies from the country.

Multiple bills under consideration by lawmakers would further those goals, including legislation that advanced through a Senate panel in July.