Proposed legislation to ban Chinese cars from U.S. roads would catch two major European automakers in the crosshairs: German giant Mercedes-Benz and Sweden-based Volvo Cars.
The current ownership of those companies exceeds the threshold for Chinese control as laid out in a bipartisan Senate bill that would ban access for their vehicles in the U.S. market until 2032. The bill specifies that a “covered country” cannot exceed 15 percent “equity interest, voting interest, board representation, or other indicia of control” in a carmaker, according to a POLITICO review of the text of S. 2040, the “Connected Vehicle National Security Review Act.”
Sponsored by Sens. Bernie Moreno (R-Ohio) and Elissa Slotkin (D-Mich.), the bill is designed to tighten and codify federal rules to prevent vehicle software linked to Chinese companies and ownership from operating in the U.S. market beginning in model year 2027. Their legislation would expand the prohibition to hardware in model year 2030. Michigan Reps. John Moolenaar (R) and Debbie Dingell (D) introduced companion legislation Monday in the House.
Security experts have warned the software violates privacy by sharing location and contact details with Chinese officials, and that the Chinese government can control vehicles from afar through software. The legislation comes as China has expanded its share of the vehicle market in Europe and is looking to sell an oversupply of electric vehicles in overseas markets at cut-rate prices.
