According to persons aware with the circumstances, US officials are expected to offer a project to prohibit the trial and use of Chinese and Russian technology and appliances in automated driving and vehicle communications systems. Bloomberg News was informed of this evolution. The approaching blocks are the outcome of a March inquiry by President Joe Biden into cybersecurity menaces related with Chinese car software.
Automobility’s producer and CEO, Bill Russo, questioned the US approach given the widespread use of Chinese software in other consumer goods. Automobility is situated in Shanghai.
“What is the end goal here, if it is okay in something other than a car, like a TV set or a smart device?” He stated. “Where do you draw the line if de-risking China software is the goal?”
In May, US EV tariffs rose to a whopping 102.5%. However, politicians—including former US President Donald Trump—and business executives in the US are growing increasingly worried that Chinese automakers would set up shop in Mexico to get around the tariffs.
Without having to rip apart the North American Free Trade Agreement, or USMCA, a free trade agreement between the US, Mexico, and Canada, Tu Le, the founder of the US-based advisory firm Sino Auto Insights, stated that Washington’s plan will eliminate a significant opening that Chinese electric vehicle manufacturers had been eyeing in order to get around import tariffs into one of the largest auto markets in the world.
Concerns regarding government subsidies and the conduct of Chinese carmakers were raised in that report to Congress.
