According to persons familiar with the situation, US officials are scheduled to present a proposal to outlaw the testing and use of Chinese and Russian technology and equipment in automated driving and vehicle communications systems. Bloomberg News was informed of this development. The impending limitations are the result of a March inquiry by President Joe Biden into cybersecurity threats associated with Chinese car software.
Given the prevalence of Chinese software in other consumer goods, Bill Russo, the founder and CEO of Shanghai-based investment advisory business Automobility, questioned the US approach.
“If it’s OK in something other than a car, it’s OK if it’s in a TV set or a smart device, what is the end game here?” he said. “If the goal is to de-risk China software, where do you draw the line?”
US EV taxes were doubled to a hefty 102.5% in May. Nevertheless, politicians, such as former US President Donald Trump, and business leaders in the US have become more concerned that Chinese automakers will establish themselves in Mexico in order to evade the tariffs.
Tu Le, the founder of the US-based advisory firm Sino Auto Insights, stated that Washington’s plan will eliminate a significant opening that Chinese electric vehicle manufacturers had been eying in order to get around import tariffs into one of the largest auto markets in the world, all without having to tear apart the North American Free Trade Agreement, or USMCA, a free trade agreement between the US, Mexico, and Canada.
That report to Congress expressed concern about the actions of Chinese car manufacturers and government subsidies.
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