The U.S. Commerce Department is considering a significant crackdown on Chinese-made drones and automotive imports as part of a broader strategy to secure national interests. In September, the Biden administration implemented steep tariff hikes on Chinese electric vehicle imports, signaling a shift in policy focus. The Commerce Department has also placed key Chinese battery company CATL on a list of firms accused of aiding China's military, raising further concerns over security implications.
The proposed measures include a sweeping ban on Chinese software and hardware integrated into connected vehicles on American roads, set to take effect in the 2027 model year for software and 2029 for hardware. This proposal extends to larger commercial vehicles, including trucks and buses, and will also encompass Russian vehicles and components. The initiative aims to effectively bar nearly all Chinese cars and trucks from the U.S. market, with exceptions for vehicles heavier than 10,000 pounds, allowing companies like China's BYD to continue operations such as assembling electric buses in California.
General Motors and Ford could potentially maintain some level of importation of Chinese-made vehicles for U.S. buyers, although the impending regulations pose challenges. The final decision rests with the incoming Trump administration, which has expressed a desire to prevent Chinese auto imports but remains open to allowing Chinese automakers to manufacture vehicles domestically within the United States.
Polestar, a Swedish automaker owned by China's Geely, expressed concerns over the new rules, warning that they would "effectively prohibit" the company from selling vehicles in the United States. Meanwhile, the Alliance for Automotive Innovation, representing major automakers, sought an additional year to meet the hardware requirements but was unsuccessful in its plea.
Commerce Secretary Gina Raimondo emphasized the importance of these measures, stating:
"It's really important because we don't want two million Chinese cars on the road and then realize… we have a threat" – Commerce Secretary Gina Raimondo
Chinese car companies will also face a ban on testing self-driving cars on U.S. roads, adding another layer to the restrictions aimed at mitigating potential security threats. The Commerce Department's plans underscore a comprehensive approach to limiting foreign influence within critical sectors of the automotive industry.
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