China criticizes US ban on Chinese technology in vehicles

The US government decided on Tuesday to gradually ban the sale of vehicles that contain Chinese or Russian technology, both in terms of components and software, given that they could pose a risk to national security.

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Illustration, Photo: Shutterstock
Illustration, Photo: Shutterstock
Disclaimer: The translations are mostly done through AI translator and might not be 100% accurate.

Beijing said on Monday it "strongly opposes" a US ban on the sale of vehicles equipped with Chinese "smart technology" for internet connectivity and other functions, saying the US argument that it is protecting its security is "baseless".

The US government decided on Tuesday to gradually ban the sale of vehicles that contain Chinese or Russian technology, both in terms of components and software, given that they could pose a risk to national security.

The decision follows a public investigation launched by the Department of Commerce in late September, which culminated in the publication of new rules aimed at "securing the vehicle supply chain from external threats."

Modern vehicles have cameras, microphones, geolocation systems and other internet-connected technologies, said US Commerce Secretary Gina Raimondo.

"Today's cars are not just steel on wheels, they are computers," she added.

Chinese Foreign Ministry spokesman Guo Jiakun said today that "China calls on the United States to stop overgeneralizing the concept of national security and stop unreasonable suppression of Chinese companies."

"Such practices undermine economic and trade cooperation between enterprises, violate the principles of market economy and fair competition," he said, adding that Beijing "strongly opposes" them.

The US ban will be phased in from 2027 for software and from 2029 for equipment.

"China is seeking to dominate the future of the auto industry," said US National Economic Advisor Lael Brainard, adding that vehicles equipped with high technology could lead to "misuse" of sensitive data.

Under the new rule, even if a vehicle with hardware and software for connecting to the internet and an autonomous driving system is made in the United States, but with a "connection" to China or Russia, it will not be possible to sell it in the US.

No such Chinese car is yet sold in the United States, but some such cars made in China are sold there by some Western manufacturers, such as the Swedish Volvo group, which is controlled by the Chinese company Geely, as well as Polestar, Buick (a GM group), and Lincoln (a subsidiary of Ford).

American manufacturer Tesla also produces electric vehicles in China for export.

Chinese giant BYD sells buses in California, but they are not yet affected by the ban.

New rules for commercial vehicles such as trucks and buses are expected "in the near future," the U.S. Commerce Department said.

China today announced "necessary measures" to "resolutely defend its legitimate rights and interests."

Sanctions and tariff increases on Chinese exports represent one of the main challenges to China's foreign trade, a pillar of its economic growth.

In December, the China Association of Automobile Manufacturers accused Washington of "arbitrarily changing control rules, seriously jeopardizing the stability of US chip supply," following a third wave of US restrictions targeting the semiconductor sector.

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