New House bill targets Chinese electric vehicle manufacturers and their connected vehicles

Chinese EV manufacturers are facing a new hurdle in their quest to enter the U.S. market as a new House bill threatens to limit or even ban the introduction of their connected vehicles. The bill, proposed by U.S. Rep. Elissa Slotkin, comes amid escalating tensions between the U.S. and China, with import duties on Chinese electric vehicles recently quadrupled to 100%.

Slotkin, a former CIA analyst and Pentagon official, has raised concerns about the potential national security risks posed by Chinese-built connected vehicles. She highlighted how these vehicles, equipped with advanced sensors capable of collecting and transmitting data back to Chinese authorities, could provide valuable intelligence on the U.S., including military bases and critical infrastructure.

The bill, named the Connected Vehicle National Security Review Act, aims to not only review EVs but also autonomous vehicles with ties to China. Provisions championed by Slotkin, such as a ban on Chinese connected vehicles at U.S. military bases, have already made it into the government’s annual defense spending bill.

The proposed legislation would give the Department of Commerce the authority to review any transaction involving connected vehicles connected to China or countries of concern, potentially impacting carmakers like BYD. The bill also seeks to strengthen national security protections and prevent future administrations from undoing these measures.

As the U.S. raises concerns over China’s data capabilities, the bill comes at a time when Beijing is relaxing rules on cross-border data flows. With the Department of Commerce set to issue a ruling on Chinese connected vehicles later this year, the future of Chinese EVs in the U.S. market remains uncertain. Slotkin plans to introduce the bill after Congress reconvenes in June.