Chinese experts have strongly criticized Washington’s proposed ban on Chinese-made software and hardware in connected and autonomous vehicles, warning that this decision could disrupt global auto supply chains, including those in the United States itself.
The US Department of Commerce is preparing to unveil restrictions targeting Chinese technology embedded in EVs, part of a broader strategy aimed at curbing China’s influence in the global electric vehicle market. This move follows the recent imposition of a steep 100% tariff on Chinese electric vehicles and signals an intensifying campaign against Chinese-made automotive products.
A report by Reuters reveals that the proposed restrictions would bar vehicles containing key Chinese-made communications or autonomous driving software and hardware from being sold on American roads. Sources suggest that the software ban could take effect as early as 2027, while hardware restrictions are slated to roll out for the 2029 or 2030 model year.
Commerce Secretary Gina Raimondo previously hinted at possible security concerns tied to Chinese EV technology, warning that software embedded in millions of cars could be remotely disabled, raising the specter of mass-scale disruption.
Experts, however, interpret these moves differently. According to Lü Xiang, a research fellow at the Chinese Academy of Social Sciences, Washington’s recent actions expose its lagging position in the new-energy vehicle sector compared to China.
“In essence, by announcing the additional tariffs and other crackdown measures, the US also made it clear that it has fallen behind China in the new-energy vehicle sector,” Lü remarked, underscoring the strategic nature of the tariffs and proposed ban.
While Chinese exports of light-duty vehicles to the US remain limited, some Chinese companies have been allowed to test autonomous driving technologies on American roads. A full ban on their software and hardware could impact both markets, potentially leading to economic losses for both Chinese and American businesses.
Xiang Ligang, director-general of the Information Consumption Alliance, commented that this would mirror the fallout from previous US bans on Chinese telecom products, resulting in higher costs for American businesses and consumers alike.
The looming ban has also sparked concerns within the US automotive sector. Major carmakers, including General Motors, Toyota, and Volkswagen, have warned that swapping out key software and hardware could prove highly complex and time-consuming, disrupting manufacturing timelines and increasing costs.
Meanwhile, US companies already feeling the pinch from higher tariffs on Chinese EVs have voiced strong opposition. Calls to delay, reduce, or even abandon the proposed tariff hikes have come from across the industry, with many warning that domestic EV makers would bear the brunt of the financial strain.
Despite industry objections, Washington seems set on its course. Analysts predict these measures will fail to slow the pace of China’s auto industry, while inflicting significant damage on US businesses.
“It becomes increasingly clear that the US’ protectionist industry policies have failed, and more protectionism will lead to even greater failure,” Lü Xiang emphasized, pointing out the untapped potential for collaboration between the two nations. Only by abandoning this aggressive stance, experts say, can the US hope to foster meaningful growth in the global auto industry.
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