Bipartisan lawmakers from Michigan introduced legislation aiming to ban Chinese-made connected vehicles, software, and hardware from the U.S. market, ahead of President Trump's upcoming meeting with Chinese President Xi Jinping.
The Connected Vehicle Security Act
On Tuesday, Representative John Moolenaar (R-Mich.), chairman of the House Select Committee on China, and Representative Debbie Dingell (D-Mich.) unveiled the "Connected Vehicle Security Act." This proposal mirrors bipartisan Senate efforts from Senator Elissa Slotkin (D-Mich.) and Senator Bernie Moreno (R-Ohio), intending to codify existing restrictions on connected vehicles based on national security and data collection concerns.
Connected vehicles are defined by their internet access and wireless connectivity, allowing them to communicate with other vehicles or trucks—a technology supporters argue can improve road safety.
Key Provisions and Concerns
The proposed legislation includes specific timelines for implementation:
- Software Prohibition: Set to take effect on January 1, 2027.
- Hardware Prohibition: Set to take effect on January 1, 2030.
Furthermore, the bill expands the scope of restrictions to include vehicles and components originating from Russia, North Korea, and Iran.
Lawmakers cited national security risks and unfair competition as primary motivations for the bill. During a press conference, Rep. Dingell stated:
"We are not competing on a level playing field when Chinese subsidizes its manufacturers, it manipulates its currency [and] it uses slave labor. That's not a level playing field."
She added that the measure aims to send a clear message regarding the protection of the American auto industry.
Industry Context and Political Pressure
The push for stricter regulations comes as U.S. automakers, suppliers, and steelmakers warn that heavily subsidized Chinese automakers could undermine the domestic industrial base if allowed unrestricted market access.
- Market Concerns: Concerns center on the potential for subsidized Chinese manufacturers to undercut U.S. industry standards.
- Political Backdrop: The move follows recent bipartisan efforts where over 120 House lawmakers urged President Trump to maintain restrictions on Chinese automakers, particularly after the President indicated openness to Chinese factory construction in the U.S. if U.S. workers were hired.
Despite this, Commerce Secretary Howard Lutnick and U.S. Trade Representative Jamieson Greer have stated that there are currently no plans to reverse existing restrictions.