China produces BYD passenger pure electric vehicles and plug-in hybrid vehicles (collectively known as Chinese New Energy Vehicles) at its factory in Sheerness, Kent. Published: Thursday, April 4, 2024.
Gareth Fuller | PA Images | Getty Images
President Joe BidenThe outgoing administration will finalize rules on Tuesday that will effectively ban nearly all Chinese cars and trucks from the U.S. market as part of a crackdown on auto software and hardware from China.
Washington’s latest move to target Chinese cars comes after the Commerce Department said this month it was considering a similar crackdown on Chinese-made drones after it sharply increased import tariffs on its electric vehicles last year.
“This is very important because we don’t want to have 2 million Chinese cars on the road and then realize…we have a threat,” U.S. Commerce Secretary Gina Raimondo told Reuters in an interview.
In September, her department proposed a complete ban on key Chinese software and hardware in connected vehicles on U.S. roads. The software ban would take effect in the 2027 model year and the hardware ban would take effect in 2029.
The rules also cover Russian vehicles and parts.
The Commerce Department said it was making some changes to the final rule, such as exempting vehicles weighing more than 10,000 pounds from the requirement, which would allow China BYD Assembly of electric buses continues in California.
On Monday, the Commerce Department said it planned to soon propose rules that would ban large commercial vehicles such as trucks and buses from using Chinese software and hardware. The final decision will be made by the incoming Trump administration.
The department said the ban would not cover Chinese software developed before the new rules took effect, as long as the software was not maintained by a Chinese company.
This means General Motors and Ford China may continue to import some Chinese-made cars for U.S. buyers, a senior official told reporters.
Alliance for Automotive Innovation, representing General Motors, Toyota Motor, Volkswagen, modern carand other major automakers sought an extra year to meet hardware requirements, but were unsuccessful.
polar starThe Swedish automaker, owned by China’s Geely, warned in October that Commerce Department rules would “effectively ban” it from selling cars in the United States if not revised.
Officials expect Polestar will need to seek specific authorization under the final rule, an administration official said. Polaris declined to comment.
In September, the Biden administration finalized a steep tariff increase on Chinese electric vehicle imports and this month added major Chinese battery company CATL to a list of companies accused of aiding the country’s military.
President-elect Donald TrumpTrump, who took office on January 20, wants to block Chinese car imports but is open to Chinese automakers producing cars in the United States.
