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U.S. advances permanent bans on Chinese auto tech and ICTS

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2026-09-29 18:32 UTC → 2026-09-30 21:32 UTC · added ~~removed~~

U.S. lawmakers are advancing bipartisan efforts to codify and expand restrictions on Chinese automotive technology and digital components. In the Senate, a bill led by Senator Elissa Slotkin (D-MI) and Senator Bernie Moreno (R-OH) seeks to make the current ban on Chinese-connected vehicles permanent. This measure aims to prevent future administrations from granting exemptions to Chinese manufacturers, addressing national security concerns that vehicles equipped with cameras and microphones could be used for espionage. The proposed Senate legislation includes a transition period until 2030 for international manufacturers with significant Chinese ownership, such as Mercedes-Benz, which has investors holding nearly one-fifth of its shares. Parallel to automotive-specific efforts, the House of Representatives is considering the Communications and Technology Transparency Act. Championed by Frank Pallone and Brett Guthrie, this legislation seeks to expand the Federal Communications Commission’s authority by shifting its focus to ‘information and communications technology or services’ (ICTS). This change would grant broader veto powers over a wider range of digital components originating from China, including microchips, servers, and data center hardware. Recent developments show the Senate bill has passed the Senate Commerce Committee as of July. However, senators have delayed a final vote until the Senate returns from recess in November. The delay follows concerns raised by Senator Rand Paul regarding the impact on Mercedes-Benz, which holds nearly 20% passive ownership from Chinese entities. Senator Moreno has stated that the final version of the bill will ensure Mercedes-Benz is not banned from the U.S. market. The legislation specifically aims to prohibit companies with more than 15% ownership by Chinese entities from selling vehicles in the United States.

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