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Chinese EV manufacturers face a new challenge in their pursuit of U.S. customer : a young House banker’s bill that would limit or shun the entry of their link vehicle .
The bill , introduced by U.S. Rep. Elissa Slotkin , comes as thetrade war between the U.S. and China heightensin the aftermath of the Biden administration ’s conclusion toquadruple signification dutieson Chinese electric fomite to 100 % .
Formosan EV manufacturers have n’t yet made significant inroad into the U.S. , as they have in Europe . The bill ’s end come out to hold manufacturers before they can inundate the American market with saucy , cheap car .
Slotkin , a former CIA analyst and Pentagon official , has repeatedly warn Congress about the menace pose by Chinese - ramp up connect vehicle . before this calendar month in aspeech on the House floor , Slotkin outlined how the Chinese political science has heavily subsidized its auto industriousness to sell advanced , low - cost EVs equipped with sensing element like lidar , radiolocation and cameras that are subject of collecting and transmitting data back to Chinese authorities .
“ If allowed into our markets , Formosan connected fomite offer the Chinese government a gem trove of valuable news on the United States , include the potential to collect information on our military bases , decisive infrastructure like the ability grid and traffic systems , and even locate specific U.S. leaders should they so choose , ” said Slotkin in a statement released Wednesday . “ China owns a fast - turn contribution of the connected machine mart in Europe and Mexico , so now is the time to ensure our defense are up , before these vehicles enter the U.S. market place . ”
Last week , preparation that Slotkin championed — like a Bachelor of Arts in Nursing on Taiwanese attached fomite at U.S. military bases and a prohibition on procuring Chinese - made lidar by the Department of Defense — made it into theU.S. government ’s annual defense spending bill .
Slotkin ’s bill , call the Connected Vehicle National Security Review Act , if passed into law , would n’t just reexamine EVs but also autonomous vehicles . A number of AV companies with ties to China , like WeRide and Pony.ai , have active license to test in California . Alphabet’sWaymo also has a deal with Formosan startup Zeekrto produce intent - build robotaxis .
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Waymo did not reply to TechCrunch ’s request for commentary on this bill .
How this bill will affect Chinese EVs
As far as EVs go , Volvo and Polestar have a presence in the United States , and both are own by China ’s Geely self-propelled . The majority of Volvo vehicle are assemble in Sweden , and the next generation of Volvo vehicles for the North American market will be work up in a lately opened plant in Ridgeville , South Carolina .
A Polestar spokesperson assured TechCrunch that it does n’t share personal data from North American and European customers with China , and that as the carmaker is headquartered in Sweden , it ’s required to comply with GDPR law .
irrespective , this nib would not free railway car build in well-disposed nations , or domestically , from examination . If hap , the bill would give the Department of Commerce dominance to review any sales agreement , importation or other dealings that affect a connected fomite “ design , build or supplied ” by any company that ’s at all connected with China or a country of vexation .
The bill hold traditional trade - restriction tools like duty one step further by potentially cast out affiliated fomite bound for the U.S. that are manufactured by Taiwanese companies in countries like Mexico . That could be aimed at car maker like BYD , whose CEO Stella Li said in February that the automaker was frequent for aplant in Mexico .
The flier would also give clear legal mightiness to the Department of Commerce and other federal government agency to tone up national security department protections and preclude future administrations from undo these protection , a move Slotkin said is not a hypothetical .
Slotkin pointed to then - President Donald Trump ’s parliamentary law that would have give the U.S. authority to address security risks from social medium political platform TikTok , which is owned by Taiwanese company ByteDance . PresidentJoe Biden in April signed a bill that would ban TikTokunless ByteDance sold the app . Trump , who is run for re - election this November , has since backtracked on his former position and evenopposed the effortsto force a sale .
The U.S. ’s elevated concerns over China ’s data prowess amount asBeijing relaxes rulesthat govern thwartwise - border data flows . Tesla is reportedly trying totake reward of thisto get the green lighter to send its own connected railroad car data back to the U.S. to train Tesla ’s “ full ego - driving ” algorithmic rule .
Slotkin ’s nib also comes as the Department of Commerce promises toissue a rulingon Taiwanese connected vehicles later this year , following the Biden administration ’s launch of a probe in February into the national security risks of such vehicles .
Slotkin design to introduce the bill after June 3 , once Congress is back in sitting after the Memorial Day niche .
This article was updated to let in comment from Polestar . It was originally published at 8:55 a.m. PT .
