Federal bill to examine auto industry ties to China

New federal legislation would direct the U.S. Secretary of Commerce to conduct a study on the national and economic security risk foreign adversaries, such as China, pose to the U.S. automotive industry, a press release from Congresswoman Diana Harshbarger’s (R-TN)  office states. 

Harshbarger co-filed the bill, the Automotive National and Economic Security Act of 2026, last week with Congresswoman Debbie Dingell (D-MI). 

“China has a playbook, and we’ve watched them run it on critical minerals, shipbuilding, and batteries,” said Harshbarger. “Now they’re setting their sights on the global automotive market, building out their industrial base with state subsidies and flooding markets with artificially cheap products to undercut American manufacturers. As vehicles become more connected and software-driven, that strategy isn’t just an economic threat, it’s a national security threat and a risk to the data of every American behind the wheel. This bill gives policymakers the facts we need to understand how deep this penetration goes and to protect our automotive industry before it’s too late.”

The act would require the secretary of commerce to conduct a study on covered activity by the automotive manufacturers connected to foreign adversaries, the release states. 

The study would examine: 

• • “Foreign ownership of, and state-directed investment in, U.S. automakers by foreign military organizations, political parties, and state-owned enterprises. 
  • “Joint ventures, subsidiaries, and commercial partnerships between U.S. manufacturers and foreign adversaries. 
  • “Transfers of critical and emerging technologies to foreign adversaries. 
  • “Impacts on U.S. national security, economic competitiveness, and intellectual property protection.”

Findings would be submitted to the House Energy and Commerce Committee and the Science and Transportation Committee, if the bill is passed. It also would be published as an unclassified report within two years of enactment. 

“I’m a car girl — I will always fight for our auto workers and this critical industry that is the backbone of America’s economy,” Dingell says in the release. “I am proud to help lead this bipartisan piece of legislation that will create good-paying jobs and protect our national security. And we must continue our efforts to decrease our reliance on China and create a level playing field.” 

Multiple automakers have taken steps to create a stronger relationship with the Chinese market. 

Last month, Stellantis promoted its China COO to a global leadership position. 

Tianshu Xin was appointed COO of Stellantis China in 2025. He also will continue to serve as CEO of Leapmotor International, a role he’s held since 2023.  

Stellantis acquired a 21% stake in Leapmotor, a Chinese EV startup, in 2023. The company is now a 51-49 joint venture between Stellantis and Leapmotor, Automotive News reports. 

Automotive News reported in April that plug-in hybrid sales by Chinese brands quadrupled in March and now represent 32% of the total European market. 

As Chinese brands have moved into Europe, automotive brands there have faced falling sales in key markets.   

Legacy automakers seem to have shifted into partnerships with Chinese automakers to be competitive in the market. 

Last month, Ford partnered with Chinese Geely Auto to produce next-generation multi-energy vehicles in Spain. 

“While the partnership was criticized by some U.S. lawmakers, Ford said Chinese competition in the region was prompting every carmaker to get ‘leaner and ​smarter,’ which was the goal behind the Geely deal,” Reuters reports.

Geely opened the world’s largest automotive testing facility late last year. The 881,894-square-foot vehicle testing center cost $284 million. 

GM sold more than 10,000 of its new Buick Electra E in May after developing the vehicle entirely at the technical center GM runs with China’s SAIC Motor Corp, according to Automotive News. 

About 20% of Mercedes ownership is now from Chinese Groups, Car and Driver reports. This includes 9.7% ownership by the founder and chairman of Geely and 9.8% ownership by the BAIC Group. 

The automaker already faces a possible ban from the U.S. if another federal, thel Connected Vehicle Security Act of 2026 is passed, according to U.S. Senate Commerce Committee Chairman Ted Cruz.  

The bill was advanced from the committee in July and would ban any vehicle equipped with connected software or hardware from China.  

Sen. Bernie Moreno (R-Ohio), the bill’s co-sponsor, responded that the bill is not intended to ban the sale of Mercedes, as he was formerly a Mercedes dealer and his son currently is. 

While legacy automakers are partnering with Chinese groups, they’ve also pointed to concerns about Chinese automakers entering the U.S. market.

Ford CEO Jim Farley has championed concerns about China for the automaker industry in recent years, he said during a town hall meeting in July that he expects Chinese automakers to enter the U.S. market in the next five to 10 years, according to Reuters.  

The federal government already has taken some action to combat Chinese and Russian connected vehicle technology from entering the U.S. with the Department of Commerce’s Bureau of Industry and Security (BIS) publishing a rule last year. 

The U.S. Department of War (DOW) also added BYD to a list of “Chinese military companies” in June, according to a press release from its office.  

The list states that BYD is directly and indirectly affiliated with China’s State-owned Assets Supervision and Administration Commission (SASAC) and is indirectly affiliated with the Ministry of Industry and Information Technology (MIIT). It also notes that BYD resides or is affiliated with a military-civil fusion enterprise zone.  

In 2024, a 100% tariff on Chinese electric vehicles (EVs) went into effect. 

​It also puts a 25% tariff on EV batteries, critical minerals, steel, aluminum, and ship-to-shore cranes, among other items, according to documents filed by the U.S. Trade Representative.

Image

Photo courtesy of Chalffy