Auto Innovators asks Congress to ban Chinese connected vehicles
The Alliance for Automotive Innovation (Auto Innovators) has asked the U.S. House and Senate to permanently ban the sale, import, and manufacturing of Chinese connected vehicles, hardware, and software before the conclusion of the 119th Congress.
“Right now, Chinese automakers are dumping subsidized vehicles with connected software and hardware around the world,” Auto Innovators CEO John Bozzella wrote in a letter to congressional leaders. “China is capturing market share in Europe, Australia, Southeast Asia, Mexico and South America with vehicles capable of collecting, processing and transmitting sensitive vehicle and consumer data to the Chinese Communist Party. This hasn’t happened inside the U.S. 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 and make this policy the law of the land.”
The letter points to multiple pieces of bipartisan legislation already in front of the House and Senate.
This includes the Connected Vehicle Security Act of 2026, a bipartisan bill introduced by Sen. Bernie Moreno (R-Ohio) and Elissa Slotkin (D-Michigan) in May, and advanced by the U.S. Senate Commerce Committee in July.
The bill would ban any vehicle equipped with connected hardware or software from China.
Chairman Ted Cruz said a section of the bill that bans connected vehicles manufactured by any entity with 15% Chinese ownership could keep Mercedes-Benz from selling in the country.
Moreno responded that the bill is not intended to ban the sale of Mercedes, as he formerly was a Mercedes dealer and his son currently is.
The companion bill, H.R. 8730, was filed by U.S. Reps. John Moolenaar (R-Michigan) and Debbie Dingell (D-Michigan).
While it wasn’t mentioned in Auto Innovators’ release, Dingell also recently filed the Automotive National and Economic Security Act of 2026 with Congresswoman Diana Harshbarger (R-TN).
The bill would direct the U.S. Secretary of Commerce to conduct a study of the national and economic security risks foreign adversaries, such as China, pose to the U.S. automotive industry.
Auto Innovators does mention that a section of the Motor Vehicle Modernization Act advanced by the House Energy & Commerce Committee in May prohibits America’s foreign adversaries, including China, from manufacturing, introducing into interstate commerce, or importing any motor vehicles in the country.
“Multiple committees in the House and Senate have devoted time and attention this session to the Chinese government’s industrial and manufacturing policy that’s rooted in a well-documented pattern of unfair trade, subsidies, intellectual property theft and surveillance,” Bozzella says in the letter. “This behavior is a feature of the Chinese approach and especially acute when it comes to China’s strategy to dominate global automotive manufacturing and critical supply chains.”
Bozzella adds that debate in the House and Senate is needed to get policy details right. He notes that details matter and he wants to work with lawmakers to achieve a balanced policy so all of Auto Innovators’ companies can continue to succeed and thrive in the country.
Auto Innovators provided comments to the U.S. Department of Commerce’s Bureau of Industry and Security (BIS) during the rulemaking process for a rule that bans Chinese and Russian connected vehicle technology in the U.S.
The comments reiterate the industry’s commitment to U.S. national security and the shared rulemaking goals. Most concerns expressed during the comment period focused on compliance deadlines.
The final rule was changed to no longer cover software developed before the rule takes effect, which impacts model year 2027 vehicles. Auto Innovators responded by saying that the final rule “strikes a good balance.”
Bozzella says in his recent letter to Congress that China’s policies undermine America’s largest manufacturing sector. He adds that the industry employs 11 million Americans in all 50 states and drives nearly $1.5 trillion into the economy each year.
“Alliance for Automotive Innovation represents the manufacturers producing most vehicles sold today in the U.S., major equipment suppliers, battery manufacturers, semiconductor makers, technology companies and autonomous vehicle developers,” the letter states. “These companies operate in every state and can compete with any company in the world.”
Image
Photo courtesy of Jeremy Poland/iStock