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Automakers Want Congress to Ban Chinese-Made Cars, Citing Data Privacy

Chinese cars are already blocked from the US market by high tariffs. But Congress is weighing an outright ban. The Alliance for Automotive Innovation, a lobby group for the auto industry, wants an outright ban on Chinese-made cars, parts and software. John Bozzella, the AAI’s CEO and president, sent a letter to congressional leaders this […]

By deepak · September 5, 2026 · 2 min read

Chinese cars are already blocked from the US market by high tariffs. But Congress is weighing an outright ban.

The Alliance for Automotive Innovation, a lobby group for the auto industry, wants an outright ban on Chinese-made cars, parts and software.

John Bozzella, the AAI’s CEO and president, sent a letter to congressional leaders this week that asks Congress to ban selling, importing and manufacturing Chinese-made cars, hardware and software. There is currently bipartisan support in Washington to do just that, including the “Connected Vehicle Security Act of 2026,” which “prohibits the importation, manufacture, sale, resale, or introduction into US interstate commerce of connected vehicles and related software and hardware components associated with China, Russia, Iran, or North Korea.” 

In the letter, Bozzella said the Chinese government’s policies are “rooted in a well-documented pattern of unfair trade, subsidies, intellectual property theft and surveillance.” The AAI expressed urgency and asked Congress to enact a ban before ending its session for this year. The AAI didn’t immediately respond to a request for comment.

Existing automakers selling to US consumers have had their own brushes with regulators over drivers’ privacy. In 2025, the Federal Trade Commission ordered General Motors not to sell driver data for five years, and a Consumer Reports investigation that year found nearly every automaker collects and shares data on driver behavior.

Chinese cars, particularly electric vehicles, have seen their popularity rise across the world due to their affordability. One reason those prices are so low is that the automakers get significant government subsidies. Chinese automakers are essentially blocked from selling to US consumers by high tariffs.

The AAI said a permanent ban 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 from the American government.”

Source: Read the original article on www.cnet.com

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