The trade association representing the majority of manufacturers selling cars in the United States is asking Congress to permanently lock the door on Chinese connected vehicles.
In a letter sent to congressional leadership, the Alliance for Automotive Innovation is pressing lawmakers to pass a permanent, nationwide ban on Chinese connected vehicles, hardware, and software before the current legislative session wraps up. Just in case.
The coalition, which speaks on behalf of legacy Detroit brands, foreign builders, and tech suppliers, argues that current administrative measures leave dangerous loopholes that future presidential administrations could easily unwind.
Reasoning and Proposed Security Limits
The alliance's push references several bipartisan bills moving through committees on Capitol Hill.
One key measure is H.R. 10158, the Automotive National and Economic Security Act of 2026, which directs federal reviews of connected vehicle technology tied to countries designated as national security threats. Another proposal, the Connected Vehicle Security Act of 2026, takes an even stricter approach by seeking to bar any automaker that is more than 15 percent owned by a Chinese entity from manufacturing, importing, or selling vehicles in the United States .
While Chinese-built vehicles already face a steep 100 percent import tariff, and the Commerce Department has outlined phased restrictions on Chinese software starting in 2027 and hardware in 2030, the group wants these restrictions codified into permanent federal law so a future administration friendlier to China can't undo them.
Data Security and Economic Protectionism
Modern connected vehicles act as massive data collection hubs, logging real-time camera footage, location history, driver habits, and critical infrastructure layouts. According to Retuers , Alliance CEO John Bozzella warned lawmakers that heavily state-subsidized Chinese automakers are already flooding foreign markets in Europe, Latin America, and Southeast Asia with low-cost connected models, creating a model that could severely undercut U.S. vehicle production if allowed into North America.
Not all brands with Chinese corporate ties are pushing back against the proposed legislation. Polestar, which is majority-owned by Volvo's parent company Geely, has said it will not contest U.S. bans on Chinese-linked connected technology as it adapts its supply chain and software sourcing to remain compliant with U.S. trade laws.
The House and Senate are expected to weigh committee votes on the proposed bans later this fall.
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