Trending Now
We have updated our Privacy Policy and Terms of Use for Eurasia Group and its affiliates, including GZERO Media, to clarify the types of data we collect, how we collect it, how we use data and with whom we share data. By using our website you consent to our Terms and Conditions and Privacy Policy, including the transfer of your personal data to the United States from your country of residence, and our use of cookies described in our Cookie Policy.
A BYD EV Dolphin Mini is displayed as the Chinese electric-vehicle producer announces the launch of the low-cost EV in Mexico City, Mexico, on Feb. 28, 2024.
The measure is framed as a national security move: Washington is worried that Chinese software in EVs could enable Beijing to suck up data on US drivers and critical infrastructure or to manipulate vehicles on the road.
But it’s also a trade move: Retrofitting Chinese vehicles with approved tech would be impractical, so the proposal would effectively ban Chinese-made EVs altogether. So far, there are very few on American roads, but US industry is worried about competition from Beijing, which has already made huge inroads in Europe, stoking trade tensions there.
Last month, Washington slapped a 100% tariff on Chinese-made EVs and components.
What happens now? A 30-day public review period will be followed by the Commerce Department writing up the final text, hoping to have it implemented by the White House before Biden leaves office.
The shortcut: The economic and technology competition between the US and China is increasingly blurring the lines between national security and commerce.