Automakers Urge Congress to Permanently Ban Chinese Vehicles

The Alliance for Automotive Innovation sent a letter to congressional leaders requesting a permanent ban on the sale, import, and manufacture of Chinese connected vehicles, citing unfair trade practices, subsidies, intellectual property theft, and surveillance risks. The trade group's CEO, John Bozzella, warned that Chinese automakers are gaining market share globally and urged action before the current Congress ends. The Senate Commerce Committee has already advanced a bill targeting companies with significant Chinese ownership, and similar House legislation has bipartisan support.

The letter arrives as the Senate Commerce Committee's July bill would bar automakers with more than 15 percent Chinese ownership from U.S. sales—a threshold that would disqualify Mercedes-Benz, whose Chinese investors hold nearly 20 percent of shares. The House companion measure, the "Connected Vehicle Security Act of 2026," introduced by Michigan Representatives Debbie Dingell and John Moolenaar, has attracted 72 bipartisan co-sponsors.

Bozzella's warning emphasizes that Chinese automakers have not yet entered the U.S. market but are expanding rapidly across Europe, Australia, Southeast Asia, Mexico, and South America. The Alliance for Automotive Innovation represents the entire U.S. auto industry, giving the letter considerable weight as lawmakers weigh national security legislation before the 119th Congress adjourns in January.