auto dealer in black and red logo
MenuMENU
SearchSEARCH

Industry Weighs in on Proposed Rule to Bar Chinese Vehicles

Trade group says aim of measure and effort to collaborate with automakers are on the right track but that the rule needs tweaking.

September 23, 2024
Industry Weighs in on Proposed Rule to Bar Chinese Vehicles

'You can’t just flip a switch and change the world’s most complex supply chain overnight,' said Alliance for Automotive Innovation's president and CEO.

Credit:

Pexels/Kelly

2 min to read


A U.S. Commerce Department proposal to effectively bar Chinese vehicles from the U.S. is a good-faith effort toward national security but could complicate domestic carmakers’ business, according to one auto industry advocate.

The proposed rule, announced by the Biden administration on Monday, would ban the sale or import of connected vehicles with technology from China and Russia, as well as the technologies themselves.

“Chinese automakers are seeking to dominate connected vehicle technologies in the United States and globally, posing new threats to our national security, including through our supply chains,” a White House statement said. “The Biden-Harris Administration is committed to ensuring that our automotive supply chains are resilient and secure from foreign threats.”

The Alliance for Automotive Innovation, an industry trade group and lobbyist, said the proposal’s aim is shared by automakers and resulted from a “thoughtful, thorough and consultative process” but that the lead time it would afford, if approved, might be too short for some automakers.

"There's actually very little technology - hardware or software - in today's connected vehicle supply chain that enters the U.S. from China. But this rule will require auto manufacturers in some cases to find alternate suppliers," said a statement by the alliance's president and CEO, John Bozzella.

“I’ve said this in other contexts, but it applies here too,” he said. “You can’t just flip a switch and change the world’s most complex supply chain overnight. It takes time.”

Bozzella said the alliance will follow the rule-making process and offer insight along the way “that reflects industry realities and achieves our shared national security goals.” 

The Biden announcement pointed out that, “Now more than ever, vehicles are directly connected into our country’s digital networks,” and that such connectivity “creates opportunities to collect and exploit sensitive information” about U.S. infrastructure and the vehicles themselves.

LEARN MORE: Report Urges Utilities, Regulators to Prep for EV Future

 

More Industry

orange background behind a line of people with a crashed car in the middle
Industry•by Lauren Lawrence•October 16, 2026

Automaker Advances Safety for All

A new report by Volvo Cars Safety Centre analyzed the impact of 50 years' worth of research in automotive safety development

Read More →
The outside of a Jack Kain car dealership
Industry•by Hannah Mitchell•October 9, 2026

Kentucky Store Leaves Family

An auto group stretched across three states picked up the Lexington-area Ford fixture as its second store for the brand in the state.

Read More →
Auto Dealer Today, Dealer Debrief, 10/09/2026, with Lauren Lawrence
Industry•by Lauren Lawrence•October 9, 2026

U.S. Auto Brands Falling Behind

Asian auto brands are outpacing U.S. brands in stateside new-vehicle sales. Learn more in this week's Dealer Debrief with Lauren!

Read More →
Ad Loading...
Auto Dealer Today, Dealer Debrief, 10/02/2026, with Lauren Lawrence
Industry•by Lauren Lawrence•October 2, 2026

U.S. EV Market Update | Dealer Debrief

The U.S. electric vehicle market is slowly recovering from the loss of the federal EV tax credit last fall. Learn more in this week's Dealer Debrief!

Read More →
Q3 Financing Climbs, red arrow pointing down, percentage symbol, green arrow pointing up, Auto Dealer Today
Industry•by Lauren Lawrence•October 2, 2026

Auto Finance Numbers Set Records

Third-quarter data show how consumers are adapting to ongoing affordability challenges facing the new- and-used-vehicle markets.

Read More →
Cake with '50' candles on top
Industry•October 1, 2026

Auto Dealerships Can’t Afford to Ignore the 50+ Consumer

Younger generations may be all the buzz today when it comes to product marketing targets, but their older cohorts command a sizable share of purchasing power.

Read More →
Ad Loading...
Gray Toyota SUV parked outside of glass paned building
Industry•by Hannah Mitchell•September 25, 2026

Savings Seekers Boost U.S. Automakers’ Rivals

As consumers here look for ways to curb inflation’s affect on their budgets, brands offering plenty of alternative powertrains are closing in on home-grown OEMs.

Read More →
Various graphs and sheets of infographics laid out with handwritten post it notes.
Industry•by Lauren Lawrence•September 25, 2026

The Slow Electric Ascent

Second-quarter data show that the electric-vehicle market in the U.S. is inching up, the majority of states seeing a month-over-month increase.

Read More →
Auto Dealer Today, Dealer Debrief, 09/23/2026, with Lauren Lawrence
Industry•by Lauren Lawrence•September 23, 2026

Safer Rides & Cyberattacks

Vehicle crash testing is getting a virtual boost, but auto dealerships are facing increased cyberattacks. Learn more in this week's Dealer Debrief!

Read More →
Ad Loading...
Dealer Debrief, Auto Dealer Today, with Lauren Lawrence, 09/18/2026
Industry•by Lauren Lawrence•September 18, 2026

Affordability Angst | Dealer Debrief

August saw little relief for car buyers, whether they were shopping new or used. Take a look at the month's breakdown in this week's Dealer Debrief!

Read More →