Automakers Urge Congress to Permanently Ban Chinese Connected Vehicles Before January Deadline

The Alliance for Automotive Innovation, which represents the vast majority of automakers selling vehicles in the United States, is pressing congressional leaders to permanently ban the domestic sale, import, and manufacturing of Chinese connected vehicles, hardware, and software before the current legislative session closes on January 3.

The lobbying group delivered its call to action in a letter sent to congressional leaders on Thursday, urging lawmakers to act before the 119th Congress adjourns — a timeline complicated by November midterm elections that could shift congressional priorities and momentum.

"Right now, Chinese automakers are dumping subsidized vehicles with connected software and hardware around the world," John Bozzella, CEO of the Alliance for Automotive Innovation, wrote in the letter. "This hasn't happened inside the U.S. yet, but given the scale and urgency of this threat, we urge you to enact a Chinese vehicle, software and hardware ban before adjourning this year and make this policy the law of the land."

The push reflects deepening concern among U.S. and foreign automakers operating domestically that Chinese rivals — including BYD and Geely — are flooding global markets with subsidized vehicles, undercutting prices and threatening domestic production. Both companies have been expanding vehicle exports to Europe and Central and South America.

The letter arrives amid bipartisan activity in both chambers. The Senate Commerce Committee has already advanced legislation that could, as written, bar Mercedes-Benz from the U.S. market because Chinese investors hold nearly 20% of the German automaker. Mercedes-Benz is itself a member of the Alliance for Automotive Innovation, creating a notable tension within the group's own membership.

The alliance acknowledged that complication directly, stating in the letter that it wants to work with lawmakers to "achieve a balanced policy so all our member companies continue to succeed and thrive inside the U.S."

Bozzella framed the proposed ban in explicitly national security terms. "Enacting a permanent ban on Chinese vehicles and high-risk hardware and software in the 119th Congress will send a clear and bipartisan message that China's strategy to dominate global automotive manufacturing will be met with a national security policy response from the American government," he wrote.

The connected-vehicle issue has drawn sustained attention in Washington over concerns that Chinese-manufactured software and hardware embedded in vehicles could transmit sensitive location and infrastructure data to foreign actors. Federal regulators have moved on related fronts, but a comprehensive statutory ban has not yet been enacted.

With the congressional calendar narrowing and midterm election season approaching, the alliance's letter is an attempt to convert existing bipartisan concern into binding law before the window closes — underscoring how urgently the auto industry views the competitive and security dimensions of the Chinese vehicle threat.