Leaders Urge Ban on Chinese Connected Cars Over Security Risks

CEOs, ex-military chiefs back Chinese connected vehicle ban

Major automakers, business leaders and retired military commanders are urging Congress to permanently restrict Chinese connected vehicles and automotive technology in the United States, citing national security and economic concerns.

The push comes as the Senate Commerce Committee considers the Connected Vehicle Security Act of 2026. The bill would codify and expand restrictions established through a Commerce Department regulation in early 2025. Those rules were intended to address risks associated with connected vehicles and related technologies that can collect and transmit data.

The committee has scheduled action on the legislation as lawmakers face pressure to complete the measure before the 119th Congress concludes. The bill has bipartisan support but has not become law.

The Alliance for Automotive Innovation, which represents most automakers selling vehicles in the United States as well as major suppliers and technology companies, asked congressional leaders to act in a Sept. 3 letter. Alliance President and CEO John Bozzella sent the request to House Speaker Mike Johnson, Senate Majority Leader John Thune, House Minority Leader Hakeem Jeffries and Senate Minority Leader Chuck Schumer.

“Right now, Chinese automakers are dumping subsidized vehicles with connected software and hardware around the world,” Bozzella said in the letter. “This hasn’t happened inside the U.S. yet, but given the scale and urgency of this threat, we urge you to enact a Chinese vehicle, software and hardware ban before adjourning this year and make this policy the law of the land.”

The Alliance’s membership includes General Motors, Ford, Toyota, Volkswagen, Hyundai, Honda and Stellantis. The organization said a permanent law would provide a lasting policy framework rather than relying solely on executive or agency action that could later be changed.

Under the proposed legislation, restrictions on covered connected vehicles and software would begin in 2027. A broader prohibition on specified foreign hardware would follow in 2030. The measure would apply not only to vehicles built in China, but also to certain technology linked to China and other designated foreign adversaries.

That distinction could affect vehicles manufactured outside China if they use covered software or hardware, or if they are connected to restricted ownership or investment arrangements. The bill includes a 15% foreign ownership threshold. Supporters say the provision is intended to prevent companies with significant ties to foreign governments or entities from avoiding the restrictions through corporate structures or overseas production.

The threshold could also draw scrutiny to global manufacturers with Chinese investment partnerships. Mercedes-Benz has been cited as one example of a manufacturer that could face questions under the proposed ownership standard. The exact effect would depend on how the law and its implementing rules define ownership, control and covered technology.

For truck drivers and fleets, the debate centers on the systems that increasingly connect commercial vehicles to outside networks. Modern vehicles can use telematics and other connected features to transmit information about location, vehicle operation and surrounding infrastructure. The legislation’s supporters argue that foreign-linked systems could create security risks if data were collected, accessed or transmitted in ways that conflict with U.S. interests.

The proposed ban would also cover connected-vehicle hardware and software, not just complete automobiles. That could make sourcing and compliance important considerations for manufacturers, suppliers, fleet operators and repair businesses that work with electronic control systems, cameras, communications equipment and other connected components. The legislation described in the provided materials does not specify how every commercial vehicle part or aftermarket system would be treated.

U.S. officials supporting the measure have framed the issue as both a security and industrial policy concern. Sen. Elissa Slotkin, a Michigan Democrat, said Chinese vehicles could threaten national security and the state’s automotive economy.

“Chinese cars are a serious threat to America’s national security and Michigan’s economic security,” Slotkin said. “Chinese cars are surveillance packages on wheels, with the ability to collect on American citizens and sensitive sites.”

Chinese automakers have not established a major presence in the U.S. passenger-vehicle market. Supporters of the bill say Congress should act before Chinese manufacturers gain a larger foothold through lower-cost, heavily subsidized vehicles and connected technology.

The Alliance also said a permanent ban would send a message that China’s effort to expand its position in global automotive manufacturing would face a national security response from the United States. Critics of the approach are not identified in the supplied information, and the legislation’s final language could change as it moves through Congress.

For now, the restrictions already in place remain based on Commerce Department regulations. The Connected Vehicle Security Act of 2026 would make those limits permanent and expand their reach, with vehicle and software restrictions beginning in 2027 and specified hardware restrictions following in 2030 if the measure passes and is signed into law.