China opposes U.S. plans to ban sales of connected vehicles with Chinese and Russian technology

Taiwan: China's Ministry of Commerce expressed strong opposition on Wednesday to the U.S. government's proposed ban on the sale of connected vehicles that incorporate Chinese and Russian technology, citing concerns about national security.

As per reports, a ministry spokesperson criticised the U.S. action as lacking a factual basis and constituting a violation of market economy principles and fair competition, labelling it a typical act of protectionism. This proposed regulation is part of President Joe Biden's tougher stance towards China, following a February announcement regarding a security investigation into potential risks posed by Chinese technology in automobiles.

Reportedly, Modern vehicles are becoming increasingly integrated with electronics, allowing connectivity to personal devices, other vehicles, and U.S. infrastructure, including electric and self-driving cars. In response, China urged the U.S. to cease its "wrong practices" of centralising national security, retract the relevant restrictions, and stop the unreasonable suppression of Chinese companies. The ministry stated that China would take necessary measures to protect the legitimate rights and interests of its companies.

The new rule, revealed by the U.S. Department of Commerce, encompasses the software and hardware that connect vehicles to external systems. However, the government has not specified which manufacturers or models will be affected, as the rule will be open for public comment for 30 days.

Additionally, the Biden administration recently implemented a 100% tariff on Chinese electric vehicles and announced other tariff increases worth billions, which have also drawn sharp criticism from Beijing. Currently, there are no Chinese-branded vehicles available for sale in the United States.
China condemned the U.S. for imposing high tariffs on Chinese vehicles, restricting government procurement participation, and introducing discriminatory subsidy policies. The spokesperson emphasised that labelling Chinese connected car software, hardware, and complete vehicles as "unsafe" on the grounds of national security significantly disrupts normal cooperation between the two nations in the automotive sector, distorting global automotive industry and supply chains.