Major carmakers are pressuring the US government to take a hard line against Chinese vehicles, fearing a looming political shake-up could derail their plans.
The Alliance for Automotive Innovation (AAI), which represents major manufacturers including Ford, General Motors, and Stellantis, is urging US Congress to pass legislation permanently banning Chinese vehicles when politicians return next week.
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The group warns that time is running out to pass the Connected Vehicle Security Act of 2026, with the US midterm elections threatening to complicate efforts to get it across the line.
“We need to protect the US market from a flood of Chinese imports that carry surveillance risks and disadvantage current manufacturers that have made generational investments in American communities,” AAI president John Bozzella said.
“Given the obvious national security risk and China’s pattern of unfair behaviour, Congress should protect our defence and advanced manufacturing base and stop Chinese automakers from doing here what they’ve gotten away with in Europe.”
A Senate committee cleared the bill in July with bipartisan support from more than 100 politicians.
However, efforts to fast-track the legislation were delayed in September after Republican Senator Rand Paul opposed the move, arguing the proposed 15 per cent Chinese ownership threshold could unfairly target German automaker Mercedes-Benz.
Chinese entities collectively hold nearly 20 per cent of Mercedes-Benz, meaning the company could technically fall under the proposed ban.
The objection forced politicians to delay a vote until November while they work on a compromise, with bill sponsor Bernie Moreno saying efforts are underway to ensure Mercedes-Benz will not be banned.
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There are now concerns the proposal could run out of time altogether.
Congressional aides and automotive lobbyists fear the bill may fail to pass before Congress wraps up its session in December if Democrats win control of the legislature.
The push comes as Chinese manufacturers continue to expand their global footprint, with brands such as BYD, MG, and Geely looking to enter the lucrative US market.
US President Donald Trump has made protecting the American automotive industry a key focus of his second term.
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However, his comments in September that he would welcome Chinese carmakers building vehicles in the US raised concerns among domestic manufacturers.
Regulations introduced under former president Joe Biden in early 2025 have effectively served as the key backstop preventing Chinese automakers from selling or manufacturing passenger vehicles in the US.
The measures were put in place over national security fears that connected vehicle data and location tracking could be handed over to the Chinese government under its strict intelligence laws.
This has meant brands like Polestar face having to exit the US market by 2027 because Chinese automotive group Geely holds a primary stake in the Swedish brand.
Washington also maintains tariffs of more than 100 per cent on Chinese electric vehicles.
China has strongly opposed the restrictions, with its foreign ministry previously urging Washington to “respect the laws of the market economy and principles of fair competition”, describing proposals targeting Chinese companies as “unreasonable suppression”.
Originally published as US car giants urge Congress to pass urgent permanent ban on Chinese vehicles