The US proposes a ban on Chinese car tech as the world’s top economies split lanes
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No peeking allowed… US regulators have determined that China shouldn’t be able to hear you belting out Celine Dion in your car. The Commerce Department proposed a ban on Chinese and Russian software and hardware in web-connected cars on US roads. The goal is to protect national security by keeping American data safe from foreign car tech that uses microphones, cameras, Bluetooth, and GPS. Meantime, carmakers in the States like GM and Tesla have controversially tapped center consoles to get data about Americans’ driving habits.
Stalled: The ban would be the latest hit to China’s EV industry, which has rapidly expanded globally but whose growth has been stunted in the US by measures like President Biden’s 100% tariffs.
Unplugged: Last year, China’s BYD sold more EVs globally than Tesla. Though the brand’s $10K cars aren’t sold in America, the budget rides can technically be imported. The proposed ban would make it even harder to get Chinese cars in.
The silicon curtain… is thickening between the world’s top two economies as the US restricts China-made tech. The Biden admin tightened trade with Chinese chip companies, restricting the sale of advanced US-made semiconductors to the mainland. In 2022, the US banned imports of new telecom equipment from Chinese cos including ZTE and Huawei. And of course there’s the ongoing divest-or-ban situation with TikTok. The US says these crackdowns stem from national-security concerns as economic and diplomatic relations erode.
Breaking up can be hard… As China became an economic and manufacturing superpower in the ’90s, it built strong trade ties with the US. But they’re unraveling: Mexico beat out China last year for the first time in two decades to become America’s top trading partner. Some experts say the growing divide could hurt consumers, leaving Americans with fewer affordable made-in-China goods.