Washington, D.C. — The Commerce Department’s announcement on Monday of a proposed prohibition on the import or sale of hardware and software in connected vehicles that originate from China or Russia is a critical first step in ensuring U.S. national security. Artifically cheap Chinese connected vehicles have enticed consumers the world over as China exports its overcapacity, but these vehicles come at a hidden cost.
“China has and will exploit any opportunity to undermine U.S. national security, and connected vehicles present an enormous leverage point,” Alliance for American Manufacturing (AAM) President Scott Paul said. “Commerce’s proposed prohibition will be a key strategy in securing our data and our automotive sector in the United States, but it’s only a first step in addressing the tidal wave of Chinese autos that will swath the globe. Truly grappling with the economic and national security threats posed by Chinese vehicles requires a holistic approach.”
In comments submitted to Commerce this April, AAM called on the department to more broadly apply its proposed rulemaking on connected vehicles to cover buses, rolling stock and other types of vehicles that already operate in major U.S. cities – in addition to traditional passenger autos and trucks.
“We applaud Commerce’s decision to expand coverage of its proposed rulemaking to nearly all vehicles that operate on our public streets, roads, and highways,” Paul said. “Failing to do so would allow known security risks to penetrate our most sensitive geographic areas and infrastructure.”
On Feb. 23, AAM published research on Chinese overcapacity’s “existential threat” to U.S. automakers. On Feb. 29, the Biden administration announced a Commerce Department investigation into national security risks posed by connected vehicles from China and other countries of concern. In May, President Biden announced that it would impose a 100% tariff rate on Chinese electric vehicles in response to the onslaught of artificially cheap Chinese cars inundating the global market.
In addition to exclusionary tariffs on Chinese auto imports, AAM’s February report called for the enactment of the Leveling the Playing Field Act 2.0 to address circumvention tactics and reinstatement of Section 421 import surge protection.
Paul is available for interview.