Senate committee members are set to vote July 18 on bipartisan legislation that would make it more difficult for Chinese automakers to enter the U.S. market, according to Reuters.
The details: The bill—sponsored by Republican Sen. Bernie Moreno of Ohio and Democratic Sen. Elissa Slotkin of Michigan—would codify a Biden administration regulation that effectively bars Chinese automakers from selling passenger vehicles in the U.S.
The legislation would also restrict automobiles, parts and vehicle software developed in partnership with China and other "adversarial nations."
It builds on a Commerce Department rule enacted last year limiting Chinese vehicles and components, with Slotkin describing them as “TikTok on Wheels” because of security concerns.
What they’re saying: “What we do is we take that model of the [Commerce Department’s] Connected Vehicle Rule and expand it so that [it covers] basically the entire supply chain, but also clarify we don’t allow the importation of the cars, even on a temporary basis, into the U.S.,” Moreno said, per NBC News, following the introduction of the bill in April. “So, we are hermetically sealing the U.S. market from the Chinese auto industry.”
Why it matters: The legislation would further solidify U.S. efforts to limit Chinese-connected vehicles and technology, giving automakers and dealers greater clarity on the competitive landscape while reinforcing the industry's shift toward regionalized supply chains.
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Between the lines: The bill reflects growing auto industry concern over the potential entry of Chinese automakers into the U.S. market.
The bipartisan proposal was introduced a day after 70 House Democrats signed a letter urging President Trump to block Chinese automakers from entering the U.S. market.
In March, automakers and dealers urged the U.S. government to block Chinese carmakers, citing "serious concerns" over China's bid to dominate global automotive manufacturing, according to Reuters.
Bottom line: If approved, the legislation would further reduce the likelihood of Chinese brands entering the U.S. market while accelerating the industry's move toward regionalized sourcing and stricter supply chain oversight. Dealers should expect geopolitical considerations to play an increasingly important role in future vehicle availability, technology, and product planning.
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