The Alliance for Automotive Innovation is urging Congress to permanently restrict Chinese vehicles from the U.S. market, arguing that lawmakers should act before the current congressional session adjourns in January.
The group, whose members include GM, Ford, Toyota, Volkswagen, Hyundai, Honda, and Stellantis, sent a letter Thursday to House Speaker Mike Johnson, Senate Majority Leader John Thune, House Minority Leader Hakeem Jeffries, and Senate Minority Leader Chuck Schumer.
“Right now, Chinese automakers are dumping subsidized vehicles with connected software and hardware around the world,” Alliance CEO John Bozzella wrote, adding that Chinese brands are already gaining share in Europe, Australia, Southeast Asia, Mexico, and South America.
Chinese Vehicles Are Already Restricted in the U.S.
Chinese vehicles are effectively locked out of the U.S. market today through steep tariffs and the Commerce Department’s Connected Vehicles Rule.
The rule bars Chinese-made software from new vehicles starting with the 2027 model year and hardware by 2030. The Alliance wants Congress to make those protections permanent law instead of leaving them dependent on regulations that a future administration could unwind.
The Senate Commerce Committee approved a bill toughening the rule in July, but the legislation has not yet cleared either chamber.
Automakers See Different Levels of Risk
The Alliance’s push comes alongside private comments from within the auto industry indicating that some executives expect Chinese automakers to eventually reach the U.S. market.
Ford executives reportedly told employees during a July town hall that they expect Chinese automakers to reach the U.S. within five to 10 years regardless of current trade barriers.
Another issue involves Chinese-built EVs already appearing in Canada and Mexico. A separate bill would extend the ban to vehicles driven across those borders, rather than limiting the restriction to vehicles sold new in the United States.
Companies With China Ties Face Enforcement Questions
The current rules have also created challenges for companies with Chinese ownership ties. Geely-owned Volvo and Polestar have tested the limits of the existing requirements.
Polestar was denied a Commerce Department authorization to sell its newest EVs, while Volvo secured approval to continue selling connected vehicles despite having the same ownership structure.
The Chinese embassy did not immediately comment on the Alliance’s letter. It has previously opposed U.S. efforts to restrict Chinese vehicle exports.
The Alliance is now pressing congressional leaders to turn the existing restrictions on Chinese vehicles into permanent law before the current congressional session adjourns in January.
