KATHMANDU: A major US auto industry group is urging Congress to make existing restrictions on Chinese vehicles permanent, citing economic and national security concerns.
The Alliance for Automotive Innovation, which represents most major automakers in the US, has asked lawmakers to ban Chinese connected vehicles along with related hardware and software.
The group says tariffs and current restrictions are not enough to keep Chinese automakers out of the US market. It argues that Chinese-made vehicles could collect and transmit sensitive vehicle and consumer data.
However, the proposed restrictions could also affect automakers with Chinese ownership. Volvo is fully owned by China’s Geely, while Chinese investors hold nearly 20% of Mercedes-Benz.
The industry group wants Congress to pass legislation before the current session ends on January 3. It has also called for a balanced approach so that the rules do not affect established automakers operating in the US.
Meanwhile, Chinese automakers are expanding in other markets. Xiaomi plans to start selling EVs in Europe in 2027 and has already signed agreements with eight German dealer groups.
Other Chinese brands, including BYD, Xpeng, Leapmotor and Nio, are also expanding in Europe. Chinese brands now account for more than 10% of vehicle sales in the region.
Canada is taking a different approach. The country has opened another import allocation for Chinese electrified vehicles, allowing up to 33,397 additional units. BYD, Chery and Geely are reportedly preparing vehicles for the Canadian market.
Despite the US restrictions, Ford CEO Jim Farley has previously said that Chinese automakers could eventually enter the US market within five to 10 years.
Waymo uses Chinese-built Zeekr vehicles for robotaxi service
Interestingly, Chinese vehicle technology is already being used in the US autonomous driving sector.
Waymo began public driverless ride-hailing services in Denver, San Diego and Tampa on September 1, expanding its US operating footprint to 14 cities.
In Denver and San Diego, Waymo is using the Zeekr-built Ojai as its exclusive robotaxi platform. Zeekr is a Chinese EV manufacturer owned by Geely Holding Group.
The Ojai is based on the Zeekr CM1e platform and is manufactured in Ningbo, China. The vehicles are then shipped to the US, where Waymo integrates its autonomous driving system, computing hardware and sensors.
The development presents an interesting contrast. While US automakers are calling for tougher restrictions on Chinese connected vehicles, a Chinese-built EV platform is already being used by one of the country’s leading autonomous driving companies.
