The U.S. House of Representatives has proposed a new bill to examine China's connected cars

On May 30, Beijing time, although Chinese electric vehicles have not yet entered the US market on a large scale, the United States has stepped up its efforts to prevent the arrival of Chinese automakers. On Wednesday local time, the U.S. House of Representatives proposed a new bill to restrict or prevent Chinese automakers from launching connected cars in the United States.

The new bill, called the Connected Vehicle National Security Review Act, was introduced by U.S. Representative Elissa Slotkin, a former CIA analyst and Pentagon official who has repeatedly warned Congress of the threat posed by Chinese-made connected cars. Prior to this, U.S. President Biden had already tripled import tariffs on Chinese electric vehicles to 100%.

“If Chinese connected cars were allowed into our market, it would provide China with a valuable trove of U.S. intelligence, potentially collecting information on our military bases and critical infrastructure like our electric grid and transportation systems,” Slotkin said in a statement released Wednesday. “China’s share of the connected car market in Europe and Mexico is growing rapidly, so now is the time to strengthen defenses before these cars enter the U.S. market.”

Connected Car National Security Review Act

Slotkin plans to introduce the bill after June 3, when Congress returns from its Memorial Day recess. Last week, some of the provisions Slotkin advocated for were included in the administration's annual defense spending bill, such as a ban on Chinese connected cars from entering U.S. military bases and a ban on the Department of Defense from purchasing Chinese-made lidar.

If the bill is passed into law, it will not only scrutinize electric vehicles, but also self-driving cars. Many self-driving car companies with ties to China have already been approved to test self-driving cars in California, such as WeRide and Pony.ai. Alphabet's Waymo has also reached an agreement with Chinese startup Zeekr to cooperate in the production of self-driving taxis.

As for electric vehicles, Geely's Volvo and Polestar both have operations in the U.S. Most of Volvo's cars are assembled in Sweden, and the company's next generation of Volvo cars for the North American market will be produced at a recently opened plant in Ridgeville, South Carolina.

A Polestar spokesman said the company does not share personal data of North American and European customers with China, and because the company is headquartered in Sweden, it must comply with Europe's General Data Protection Regulation (GDPR).

However, the new bill would not exempt cars made in countries friendly to the United States or domestically from scrutiny. If passed, the bill would give the Commerce Department the power to review any connected car "designed, manufactured, or supplied" by a company with ties to China or a country of concern, covering any sale, import or other transaction.

U.S. Commerce Secretary Gina Raimondo said on May 15 that the U.S. Department of Commerce plans to release proposed rules for Chinese connected cars this fall. Raimondo said the United States may take "extreme action" to ban or impose restrictions on Chinese connected cars after the Biden administration launched an investigation in February into whether Chinese auto imports pose a national security risk.

Regarding the US national security review of China's connected cars, China's Ministry of Commerce said in March this year that the US side used "national security" as an excuse to hinder the normal export of Chinese cars, and China expressed serious concern. In recent years, the US has imposed high tariffs on Chinese cars, restricted participation in government procurement, and introduced discriminatory subsidy policies. Now, under the banner of national security, it intends to set up non-tariff barriers. This is a typical protectionist practice that will disrupt and distort the global automotive industry chain and supply chain, and will also harm the interests of American consumers.