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Senate Panel Advances Bill Targeting Chinese-Linked Vehicles

The legislation, introduced by Republican Senator Bernie Moreno and Democratic Senator Elissa Slotkin, would formally establish restrictions first proposed under the Biden administration.

US Senate panel approves China vehicle crackdown Bill. Pic via(@straits_times)

A bipartisan bill aimed at tightening restrictions on Chinese-linked automakers has advanced in the Senate Commerce Committee as lawmakers seek to strengthen protections for the U.S. auto industry.

The legislation, introduced by Republican Senator Bernie Moreno and Democratic Senator Elissa Slotkin, would formally establish restrictions first proposed under the Biden administration.

According to the report, the measure would bar vehicle sales by automakers that are more than 15 percent owned by Chinese entities.

Senator Moreno said the proposal is intended to protect America's industrial base from growing foreign competition.

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The report said the ownership threshold could affect companies including Mercedes-Benz, which has significant Chinese ownership, and Sweden-based Polestar, which is majority-owned by China's Geely.

Mercedes-Benz is reportedly seeking changes to the ownership provision as discussions continue over software and vehicle connectivity standards.

Meanwhile, General Motors and Ford are shifting production of some China-made models to the United States, while Waymo has said it will explore using a Detroit-based manufacturer for future vehicle platforms.

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Editor’s Note: TIPP Insights publishes selected commentaries from Project Syndicate to present a range of informed perspectives on issues affecting markets, business, and public policy. The views expressed are those of the author and do not necessarily reflect the views of TIPP Insights or its editorial board. By Jim

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