Biden bans connected cars from Chinese manufacturers
U.S. President Joe Biden is placing new hurdles for Chinese cars in the final stretch of his presidency. According to new rules, connected vehicles from manufacturers under Chinese or Russian control will no longer be allowed to be sold in the United States. The ban is set to take effect from the 2027 model year.
The focus is on the electronics in the cars: mobile communications and other communication technologies, as well as driver assistance systems. The White House statement mentions the risk that foreign adversaries could gain access to data.
No Exception for US Production
Vehicles built in the USA are also affected. This could, for example, put Tesla competitor Polestar in a difficult position. It builds vehicles in the US state of South Carolina but ultimately falls under the control of the Chinese Geely Group and its founder Li Shufu.
Meanwhile, the robotaxi company Waymo wants to use converted cars from the Chinese brand Zeekr for its next vehicle generation. However, the Google sister company emphasizes that it will install its own computers into the bodies.
Next Step After Tariffs
Biden's administration already shielded the US auto market with tariffs of 100 percent on cars from China. Donald Trump, who will be sworn in as US President on January 20, always promised a tough stance towards Beijing as well.
His current close confidant Elon Musk, who leads the electric car manufacturer Tesla, had at that time criticized the high tariffs as market distortion. Tesla has a large factory in Shanghai and needs the Chinese market.
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