The Biden administration wants to prevent Chinese parts from being used on vehicles in the United States. The goal is to have the proposal signed into law by January 20, 2025, before the president hands over to his successor.
Joe Biden’s administration is trying to strike another blow to the Chinese auto industry. After imposing 100% tariffs on electric cars produced in Beijing, on September 23, 2024 The Commerce Department in Washington has proposed banning manufacturers from installing Chinese software and hardware on vehicles destined for the U.S. market.. A measure that would displace not only Chinese car manufacturers but also American ones, which would be called upon in the coming years to replace Chinese software and hardware on their models. The reasons that led to formulating this proposal are not only market-related, but also of national security. The White House has two main concerns: the potential collection of data that Chinese companies could perform on American drivers and infrastructure through connected vehicles, and the potential foreign manipulation of internet-connected vehicles and navigation systems. If the proposal passes, China would not be the only country affected: Russian components would also be banned.
national security
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As anticipated, the Biden administration’s offensive regarding the Chinese components must also be analyzed from the perspective of national security. So said US Commerce Secretary Gina Raimondo: “When foreign adversaries build software for a vehicle, it means it can be used for surveillance or remotely controlled, putting the privacy and safety of Americans on the road at risk.” A problem that concerns sensitive data and privacy thereforebut not only that: “In an extreme situation, a foreign adversary could block or take control of all vehicles operating in the United States at the same time, causing accidents and blocking roads,” Raimondo added. But how large is the presence of vehicles imported from China in the United States? In reality, it is not a large slice of the market, but the American proposal wants to nip the risks mentioned above in the bud: “We will not wait for our roads to be full of Chinese cars and the risk to become extremely significant before acting,” Raimondo always stressed.
Beijing’s reaction
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Beijing’s response to this proposal could not have been positive. The Chinese automotive industry finds itself facing another important political issue, the umpteenth in recent months. After the duties imposed by the European Union and the Americans, Washington’s new proposal could make it very difficult for Chinese brands to access one of the most important markets in the world. This is the comment of the Chinese embassy: “China calls on the United States to seriously respect market principles and international trade rules, creating a level playing field for companies from all countries. China will firmly defend its legitimate rights and interests”.
the date
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The White House’s goal is to turn the proposal into law by January 20, 2025that is, before Joe Biden leaves the presidency to Kamala Harris or Donald Trump. If confirmed, the ban on Chinese software would be in effect for the model year 2027, while that for the hardware for the model year 2030 or January 2029. The Alliance for Automotive Innovation, a group representing major U.S. automakers including General Motors, Toyota, Volkswagen and Hyundai, said it would take time to replace Chinese software and hardware. The group did not say what percentage of U.S. vehicles contain Chinese-made parts.
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2024-09-24 22:02:06
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