Major U.S. automakers are urging Congress to permanently prohibit the sale, import, and manufacturing of connected vehicles, hardware, and software originating from China. Represented by the Alliance for Automotive Innovation, which includes nearly all companies selling cars in the U.S., the industry group highlighted the urgent need for legislation ahead of Congress’ current session ending January 3. The call for this ban reflects concerns about subsidized Chinese vehicles threatening the domestic market with unfair competition.

John Bozzella, CEO of the Alliance for Automotive Innovation, emphasized the growing threat posed by Chinese automakers who are distributing heavily subsidized connected vehicles worldwide, though this has not yet penetrated the U.S. market. The Alliance’s letter to congressional leaders stresses the importance of addressing this issue quickly due to the scale and potential risk. This push is occurring as Congress faces the prospect of midterm elections in November, which could impact the likelihood of rapid legislative action.

Bipartisan efforts are already underway to tackle the presence of Chinese vehicles in the U.S. market, with legislative proposals in both the House and Senate. One prominent bill under consideration by the Senate Commerce Committee could even prevent Mercedes-Benz from operating in the U.S. due to Chinese investors owning a substantial portion of the German automaker. The Alliance, which counts Mercedes-Benz as a member, expressed willingness to collaborate with lawmakers to develop a balanced approach that allows its companies to continue thriving domestically.

The automakers’ warnings stem from concerns about Chinese rivals such as BYD and Geely expanding their exports to Europe, Central America, and South America, often using aggressive pricing supported by subsidies. The Alliance argues that enacting a permanent ban would send a strong bipartisan message to China, framing the issue as a matter of national security. Such legislation is intended to counter China’s ambitions to dominate global automotive manufacturing and protect the U.S. industry from unfair competition.