Picture taken of a Porsche Panamera car driven by the Huawei Mate 10 Pro smartphone outside the Camp Nou stadium in Barcelona on February 26, 2018, on the first day of the Mobile World Congress (MWC). (Photo/CFP)
A week after the U.S. proposed banning the import and sale of connected vehicles with Chinese components, several Western countries began considering similar measures, sparking a global debate on the issue.
On September 23, the U.S. Department of Commerce announced a ban on the import and sale of connected and autonomous vehicles equipped with Chinese and Russian software and hardware. U.S. officials expressed concerns that these components could transmit real-time data—such as location, driver behavior, and personal information—that might be exploited for espionage or even remote control of vehicles on American roads.
Following the U.S. decision, Australia, Canada, and the U.K. are reportedly weighing similar bans or other legislative actions to address these security concerns. Meanwhile, the European Union has taken a different approach by focusing on tariffs. On October 4, the EU approved anti-subsidy tariffs of up to 35.3 percent on Chinese electric vehicles, adding to the existing 10 percent tariff.
However, some EU countries, particularly Germany, which has strong economic ties to China, have voiced opposition. They argued that such high tariffs could backfire on European manufacturers, especially as automakers like Mercedes-Benz, BMW, and SEAT rely heavily on the Chinese market. These countries warned that the U.S. measures and the EU tariffs could hurt Europe's powerful auto sector in the long term, undermining the competitiveness of European automakers and delaying the region's push toward low-carbon transportation.
U.S. automakers' response
American automakers cautioned that there is currently minimal Chinese technology in the U.S. connected vehicle supply chain. The Alliance for Automotive Innovation (AAI), a Washington, D.C.-based trade association, highlighted the challenges of compliance.
"You can't just flip a switch and change the world's most complex supply chain overnight. It takes time," said John Bozzella, president and CEO of the AAI, in a statement.
Australia's concerns
The Australian government, led by Prime Minister Anthony Albanese, is closely monitoring the U.S. move, though there has been pressure from opposition leaders for stronger action.
Industry experts like Mike Costello, corporate affairs manager at Cox Automotive Australia, warned that following the U.S. could be challenging and costly. He noted that Chinese brands are more deeply entrenched in Australia than in the U.S.
European Union and the tariff debate
The EU is gradually examining its stance on Chinese connected-car technology. Margrethe Vestager, a leading EU official, referred to these vehicles as "computers on wheels," echoing U.S. concerns. While the EU is deliberating over its own restrictions, the immediate focus has been on imposing tariffs on Chinese EVs.
Experts have weighed in on the broader implications of this move. Gary Clyde Hufbauer, a senior fellow at the Peterson Institute for International Economics, called the U.S. proposal a significant step toward economic "decoupling." Jeffrey Sachs, an economics professor at Columbia University, argued that there is no clear evidence that China is using its vehicles for illicit data collection and suggested that the U.S. may be using protectionism under the guise of national security.
Chinese response
China has strongly criticized the U.S. ban, accusing Washington of overstretching the concept of national security. Lin Jian, a spokesperson for China's Ministry of Foreign Affairs, said, "We urge the U.S. to respect the principles of a market economy and provide an open, fair, transparent, and non-discriminatory business environment for Chinese companies. China will firmly defend its lawful rights and interests."
Public reactions
Online, public opinion on the issue is divided. Some netizens criticized the U.S. for its protectionist stance, calling for free trade and collaboration instead.
A comment on X, a social media platform formerly known as Twitter, under a post by The Washington Post claimed, "The U.S. has lost the green energy competition and is losing the race toward 21st-century technologies."
French entrepreneur Arnaud Bertrand echoed this sentiment on X, writing, "The Chinese car industry didn't become strong by banning foreign brands; it welcomed them. Now, Tesla produces more than half of its global output in Shanghai."
Many online voices argued that the U.S. is retreating behind protectionist policies rather than facing global competition head-on. Bertrand concluded, "We've reached a strange point where 'communist China' has much freer markets than the 'capitalist U.S.'."
Co-presented by GDToday and the School of Journalism and Communication, Jinan University
Reporter | Lydia Liu, Zhan Manqi (intern), Zhang Mengjiao (intern)
Editor | Steven Yuen, Will Wei, James
