Elissa Slotkin

WASHINGTON - A Republican senator from Ohio and a Democratic senator from Michigan are teaming up on legislation that would ban Chinese-made connected vehicles and their software and hardware components from American roads, framing the issue as essential to both national security and the survival of the U.S. auto industry.

Westlake’s Bernie Moreno and Elissa Slotkin argue their Connected Vehicle Security Act will protect U.S. automakers from being undercut by vehicles whose production is subsidized by the Chinese government.

The legislation was introduced as President Donald Trump prepares to travel to Beijing in mid-May for a summit with Chinese President Xi Jinping — a meeting that has prompted concern among lawmakers on both sides of the aisle that auto sector trade concessions could be considered.

Moreno and Slotkin estimate that, if Chinese vehicles were permitted into the United States, it could cost 400,000 jobs from auto manufacturers, suppliers and associated businesses.

“As Europe, Mexico, and others allow their markets to be overrun by Chinese predators, the U.S. must act before it’s too late,” said a statement from Moreno, who ran a chain of car dealerships before entering Congress. “The answer is simple: Chinese vehicles can never be allowed into the U.S. market—the fate of the American auto industry and countless autoworkers depends on it.”

The pair are also concerned that Chinese-made connected vehicles pose a surveillance risk that goes beyond ordinary data privacy concerns. They note that connected vehicles can collect, process, and transmit vast amounts of sensitive data, including geolocation, operational, and personal information, and are capable of being remotely accessed and controlled.

The bill’s sponsors say Chinese intelligence laws would allow companies with access to the information in individual cars to exploit that information for “espionage, surveillance, or worse: remote takeover of vehicles on American roads.”

A statement from Slotkin, a former Central Intelligence Agency officer, described Chinese cars as “surveillance packages on wheels, with the ability to collect on American citizens and sensitive sites.”

“The Chinese Communist Party’s playbook of heavily subsidizing their product, underselling the competition, and then having a monopoly over that sector puts Michigan’s auto industry and our millions of workers at risk,” Slotkin’s statement continued.

The bill they introduced last week would prohibit the importation, manufacture, sale, resale or introduction into interstate commerce of connected vehicles whose country of origin is China or other countries designated as foreign adversaries, including Russia, North Korea and Iran.

The ban would also apply to vehicles made by joint ventures in which a covered-country entity holds more than 15 percent equity or control. Restrictions on connected vehicle software would take effect January 1, 2027, with hardware restrictions following on January 1, 2030.

The legislation gives the Department of Commerce authority to identify and block high-risk vehicle technologies and transactions. It establishes a process for companies to seek binding rulings on whether specific products are covered by the prohibitions, and it creates a waiver process under which the Commerce Secretary — with congressional notification and a 60-day review period — could authorize an otherwise-prohibited item if clear and convincing evidence shows it poses no undue risk.

Civil penalties for violations would be no less than the greater of $1.5 million or five times the value of the transaction, with each day of a continuing violation treated as a separate offense.

The bill was introduced a day after more than 70 members of the U.S. House of Representatives, including all five of Ohio’s Democratic congress members, sent a letter urging Trump to block Chinese automakers from the U.S. market ahead of his Beijing trip.

The signatories warned that “any effort to lower barriers for Chinese automobiles or otherwise facilitate their entry into the US market would pose a direct threat to American manufacturing, workers, and national security.”

Support from industry and labor

The bill drew immediate support from General Motors, the United Auto Workers union (UAW) and several advocacy organizations.

A statement from UAW President Shawn Fain said the legislation “puts common sense guardrails on a major threat to our nation’s auto industry.”

“General Motors supports policies that protect and strengthen American manufacturing and the global competitiveness of U.S. automakers,” said a statement from the company in support of the bill. “We can compete with anyone in the world when we are given a level playing field.”

The bill has been referred to the Senate Commerce, Science, and Transportation Committee.

“We would be handing over our transportation future to a hostile nation,” Moreno told Bloomberg television, expressing hopes that other countries will adopt the kind of policies the bill would implement. “That is absolutely a non starter.”