Bipartisan Bill Targets Chinese-Made Vehicles And Connected Auto Technology In U.S. Market

A bipartisan group of U.S. senators has introduced legislation that would ban Chinese-made vehicles, auto parts and connected vehicle software from the American market over national security concerns.

The proposal, known as the Connected Vehicle Security Act of 2026, would prohibit the import, sale, manufacture and resale of vehicles and related technologies originating from China or other countries designated as foreign adversaries. The bill also targets software systems and connected components used in modern internet-enabled vehicles.

Senators Bernie Moreno, a Republican from Ohio, and Elissa Slotkin, a Democrat from Michigan, are leading the measure. Moreno said the legislation is designed to prevent what he described as long-term structural risks to the U.S. auto industry. “We are hermetically sealing the U.S. market from the Chinese auto industry,” Moreno said. He added that the intent is to expand existing Commerce Department restrictions into a comprehensive statutory ban.

Slotkin framed the measure as a national and economic security initiative, warning that connected vehicles could function as “surveillance packages on wheels, with the ability to collect on American citizens and sensitive sites.”

”The Chinese Communist Party’s playbook of heavily subsidizing their product, underselling the competition, and then having a monopoly over that sector puts Michigan’s auto industry and our millions of workers at risk. We need to act now, and get this right,” Slotkin said.

The legislation builds on prior federal actions, including Commerce Department rules restricting Chinese-connected vehicle technologies from entering the U.S. market. Lawmakers behind the new bill argue that codifying these restrictions into law would strengthen enforcement and prevent policy shifts under future administrations, according to the NBC News report.

The proposal has received backing from labor groups and industry stakeholders. United Auto Workers President Shawn Fain said: ”The American Dream was launched and sustained out of good union auto jobs here in the United States. If we want to rebuild US manufacturing and raise standards for the working class, we can’t keep offshoring and outsourcing our auto industry, driving a global race to the bottom for short term corporate profits.” He added that strengthening connected vehicle restrictions would “put common sense guardrails on a major threat to our nation’s auto industry,” according to the Senate release.

General Motors also expressed support for the legislative direction, saying it “commends Senators Moreno (R-OH) and Slotkin (D-MI)” and supports policies that reinforce American manufacturing competitiveness, according to the same release.

Lawmakers and industry executives have increasingly pointed to China’s rapid expansion in global electric vehicle markets as a competitive pressure point. A report by The Wall Street Journal described growing Chinese automotive presence in markets across Europe, Mexico and other regions, with Mexican dealerships already selling brands such as BYD, Geely and Great Wall Motor near the U.S. border.

That proximity has raised concerns among U.S. auto executives. Hyundai Motor CEO José Muñoz said in comments cited by The WSJ that competing with Chinese pricing levels would be extremely difficult, noting that “we cannot compete at the same price as the Chinese in the market where we operate.”

The geopolitical dimension of the legislation has also drawn attention. A related report from Detroit News noted that 73 House Democrats have urged the administration to maintain strict limits on Chinese automakers ahead of upcoming U.S.-China talks, citing risks to manufacturing and national security. The outlet also reported bipartisan efforts in Congress to expand restrictions beyond existing trade barriers and tariffs.

According to the Senate bill summary, the proposal would extend federal oversight to vehicle software and hardware systems, giving the Commerce Department authority to identify and block technologies deemed high risk. It also includes phased implementation, with software and vehicle restrictions beginning in 2027 and hardware restrictions following in 2030.

The broader debate comes as Chinese automakers continue expanding internationally, with global sales growth and rising penetration in markets such as Latin America and Europe, according to reporting and industry data referenced by IBT in prior coverage of China’s automotive sector expansion and regulatory tightening on pricing practices.