Chinese Software and Hardware Faces US Trade Ban in Connected Vehicles

Chinese Tech Targeted by US Trade Ban

Citing national security concerns, the US administration is contemplating a ban on Chinese software and hardware in connected vehicles and electric cars on American roads, as reported by Reuters. The American authorities have raised substantial concerns regarding data collection by Chinese companies and the potential foreign manipulation of internet-connected vehicles. The proposed regulation would prohibit the import and sale of vehicles from China that contain critical communication or automated driving system software or hardware.

China Responds to US Trade Measures

In response to the anticipated US proposal, China condemned the potential discriminatory actions against its companies. Foreign ministry spokesman Lin Jian stated, "The US must respect market principles and create a fair and transparent business environment for Chinese enterprises." He emphasized that China is against the US broadening the definition of national security to target its companies and products.

Escalating Trade Tensions

This ongoing situation could heighten the trade conflict between the US and China. Recently, the US government has implemented significant tariff hikes on Chinese imports, including a 100% duty on electric vehicles and increased tariffs on EV batteries and crucial minerals. These prohibitions could also potentially extend to other foreign adversaries of the US.