The Alliance for Automotive Innovation is pushing congressional leaders to enact a sweeping permanent ban on Chinese-made cars, software, and hardware sold in the United States.
The trade group, which represents virtually the entire U.S. auto industry, sent a letter Thursday to senior lawmakers demanding action before Congress adjourns its current legislative session on January 3.
Alliance President and CEO John Bozzella addressed the letter directly to Senate Majority Leader John Thune (R-S.D.), Senate Minority Leader Chuck Schumer, and other top congressional leaders.
Bozzella described China’s manufacturing approach as “rooted in a well-documented pattern of unfair trade, subsidies, intellectual property theft and surveillance,” warning lawmakers that the threat is both urgent and escalating.
“Right now, Chinese automakers are dumping subsidized vehicles with connected software and hardware around the world,” Bozzella wrote in the letter to congressional leaders.
He added, “This hasn’t happened inside the U.S. yet, but given the scale and urgency of this threat, we urge you to enact a Chinese vehicle, software and hardware ban before adjourning this year and make this policy the law of the land.”
The Alliance represents a broad coalition of major automakers selling vehicles in the U.S., including General Motors (GM), Ford (F), Toyota (TM), Volkswagen, Hyundai, Honda (HMC), and Stellantis (STLA), among others.
Automakers have grown increasingly alarmed as Chinese rivals such as BYD and Geely expand their vehicle exports aggressively into European, Central American, and South American markets, undercutting domestic producers on price.
The Senate Commerce Committee approved legislation in July that would ban companies with more than 15 percent Chinese ownership from selling vehicles in the U.S., a threshold that would affect Mercedes-Benz (MBG), whose shares are nearly 20 percent held by Chinese investors.
The Alliance said it wants to work with lawmakers to “achieve a balanced policy so all our member companies continue to succeed and thrive inside the U.S.,” signaling concern about legislation that could inadvertently harm its own members.
In the House, Representatives Debbie Dingell (D-Mich.) and John Moolenaar (R-Mich.) introduced the “Connected Vehicle Security Act of 2026,” which has attracted 72 additional co-sponsors from both parties.
Bozzella referenced both legislative efforts, writing that lawmakers “are determined to get the details of this policy right” as the push for permanent restrictions gains bipartisan momentum.
He argued that “enacting a permanent ban on Chinese vehicles and high-risk hardware and software in the 119th Congress will send a clear and bipartisan message that China’s strategy to dominate global automotive manufacturing will be met with a national security policy response.”
Chinese vehicles are currently restricted from the U.S. market through steep tariffs and a Commerce Department ban on connected vehicle systems from adversarial nations, but the Alliance wants those restrictions codified permanently into law.
The Chinese embassy did not immediately respond to requests for comment, though Beijing has historically opposed U.S. efforts to restrict Chinese vehicle exports and related technology sales.
