US Proposes Ban on Chinese Tech in Electric Vehicles, China Pushes Back

The United States is set to propose a ban on Chinese-made software and hardware in connected and autonomous vehicles, citing national security concerns. The plan, reported by Reuters, aims to implement software restrictions by the 2027 model year and hardware bans by January 2029.

China's Foreign Ministry spokesperson Lin Jian criticized the move, stating that China will firmly defend its lawful rights and interests. \"China opposes the U.S. overstretching the concept of national security and taking discriminatory measures against relevant Chinese companies and products,\" Lin said.

The U.S. Department of Commerce has opened a 30-day public comment period on the proposal, with hopes to finalize the rules by January 20. The proposed restrictions would affect all on-road vehicles but exclude agricultural and mining vehicles, drones, and trains.

Despite China leading the global automobile market and exports, its share of vehicle exports to the U.S. remains minimal. In 2023, China exported 74,800 passenger cars to the U.S., accounting for just 1.4% of its total exports. Of these, 18,600 were new energy passenger cars, representing only 0.4% of total exports.

Chinese Foreign Ministry spokesperson Mao Ning highlighted that Chinese-made cars have succeeded globally through technological innovation and quality, not unfair practices. \"China's door has been open to global auto companies, including U.S. auto companies which have fully shared the dividends of China's big market,\" Mao stated.

He further criticized the U.S. for what he described as trade protectionism and discriminatory subsidy policies that hinder Chinese companies' access to the U.S. market. Mao emphasized the need for the U.S. to respect market economy laws and uphold fair competition principles.

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