A trade group representing major automakers sent a letter to congressional leadership on Thursday, September 3, 2026, requesting a permanent ban on the sale, import, and manufacturing of Chinese-made connected vehicles in the United States. The Alliance for Automotive Innovation, which represents the majority of the U.S. auto industry, urged lawmakers to enact the ban before the current session of the 119th Congress concludes in January 2027.
John Bozzella, president and CEO of the Alliance, addressed the letter to Senate Majority Leader John Thune (R-S.D.), Senate Minority Leader Chuck Schumer (D-N.Y.), Speaker Mike Johnson (R-La.), and House Minority Leader Hakeem Jeffries (D-N.Y.). The organization cited national security concerns and documented patterns of unfair trade, subsidies, intellectual property theft, and surveillance as the basis for the request.
The letter noted that while Chinese automakers have not yet established a significant presence in the U.S., they are capturing market share in Europe, Australia, Southeast Asia, Mexico, and South America. Bozzella stated that these vehicles are capable of transmitting sensitive vehicle and consumer data to the Chinese government. The trade group, which includes Mercedes-Benz, expressed a desire to work with Congress to balance these restrictions so that member companies can remain successful in the domestic market.
Legislative efforts to address these concerns are already moving through Congress. The Senate Commerce Committee approved a bill in July that would ban companies with more than 15 percent Chinese ownership from selling vehicles in the U.S. In the House, Reps. Debbie Dingell (D-Mich.) and John Moolenaar (R-Mich.) introduced the "Connected Vehicle Security Act of 2026," which has 72 co-sponsors from both parties.
The scale of the impact includes the U.S. auto industry represented by the Alliance, as well as foreign firms with partial Chinese ownership. For example, under the Senate proposal, Mercedes-Benz would be prohibited from selling cars in the U.S. because Chinese investors hold nearly 20% of the German company's shares. This would result in the removal of vehicles from the U.S. market, affecting car buyers and Mercedes-Benz's domestic dealership networks and employees.
The concrete change for Americans would be the formal exclusion of Chinese software and hardware from the automotive supply chain. A person purchasing a new "connected" vehicle would have a legal guarantee that their vehicle data is not processed by Chinese-owned entities. This sets a precedent for how the U.S. handles high-tech hardware from specific nations. What happens next depends on congressional timing; the industry is pushing for a vote before the 119th Congress adjourns in January 2027, though upcoming midterm elections in November could impact legislative momentum.