Experts predict that a strict ban on import and sale of Chinese cars and components could dramatically hit car sales across the country
In some circles, Chinese electric cars are seen as the biggest threat to America as they’ll spy on us, steal our data and bring the American auto industry to ruin. Because of this, lawmakers across the country are working on legislation that would limit the availability of electric vehicles from China here in the Land Of The Free, but those very laws could actually do just as much damage to the American automotive world.
Experts now predict that a strict ban on import and sale of Chinese cars and components could dramatically hit car sales across the country and could raise prices for some models, reports Reuters. Proposed tightening of restrictions on the import of connected car components and full vehicles from China could reportedly cut car sales across the U.S. by up to 25,000 vehicles annually:
U.S. automakers and others selling in the United States “may be less competitive in the global market because of the relatively higher prices of their vehicles,” the department said. It estimated between 1,680 and 25,841 fewer vehicles would be sold annually because of the rule.
Acting to reduce national security vulnerabilities that could be exploited by China, the department estimated the rule could bar $1.5 billion to $2.3 billion in vehicle inputs from Chinese or Russian companies for vehicles sold in the United States.
It said previously that the proposal would amount to an effective ban on Chinese vehicles since all would have internet-connected vehicle software and hardware, but it has proposed a process for companies to seek exemptions.
Current proposals to restrict the availability of Chinese cars and parts are set to come into force for the 2027 model years. Initially, the ban would include a restriction on software from China, but this would be followed by a clampdown on Chinese hardware from 2030.
The rules are being drawn up by the Biden administration in an attempt to reduce “the chance of a catastrophic attack,” reports Reuters. Without Chinese software and hardware in our cars, the American people would reportedly be safe from data thefts and “remote manipulation of connected vehicles,” the site explains.
Join 500,000+ readers who start their day with Quartz.
By subscribing, you agree to our Terms of Service and Privacy Policy.
