BYD and Geely in the Crosshairs as US Automakers Push Congress for Permanent Ban on Chinese Connected Cars

America’s major automakers are mounting a lobbying campaign in Congress to permanently keep Chinese connected cars, critical software and hardware out of the United States.

The Alliance for Automotive Innovation, which represents companies responsible for most US vehicle sales, sent a letter to congressional leaders on Thursday. It urged lawmakers to act before the current congressional session ends on January 3, saying China’s rapid automotive expansion poses both competitive and national security concerns.

Alliance chief executive John Bozzella said Chinese manufacturers are now exporting subsidized vehicles equipped with connected software and hardware to markets around the world. That situation has not yet occurred in the United States, he said, but the scale and urgency of the threat justify passing a ban before Congress leaves for its recess and writing it into US law.

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Chinese automakers are now exporting subsidized vehicles equipped with connected software and hardware to markets around the world.

The push comes as lawmakers from both parties continue working on China-related auto legislation in the House and Senate. A measure under consideration by the Senate Commerce Committee could even affect Mercedes-Benz, because Chinese investors hold nearly 20% of the German automaker.

The alliance said it wants to work with lawmakers on a “balanced policy” that allows its members to continue operating in the US market. US manufacturers are also concerned about BYD, Geely and other Chinese companies expanding across Europe, Central America and South America with lower-priced vehicles. Bozzella said a permanent ban would send a clear bipartisan message that Washington will answer China’s attempt to dominate global auto manufacturing through national security policy. The November midterm elections could affect the pace of further legislation.

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Balanced policy