Officials urge President Biden to ban China-made cars, label them 'existential threat’ to US auto industry

Officials urge President Biden to ban China-made cars, label them 'existential threat’ to US auto industry

FP Staff April 12, 2024, 15:07:36 IST

Major politicians and officials in the current US administration have strongly urging President Biden to ban vehicles made in China. Even the White House has publicly stated that they are worried about the kind of equipment these Chinese cars and what kind of data they collect

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Officials urge President Biden to ban China-made cars, label them 'existential threat’ to US auto industry
In Feb this year, the Biden White House started investigating Chinese cars and the tech they use. Image Credit AFP

President Joe Biden is facing mounting pressure to enforce a permanent ban on Chinese-made cars entering the United States. In the latest development on getting Biden to ban Chinese cars, the Chair of the Senate Banking Committee, Senator Sherrod Brown, wrote to Biden, urging him to sign an executive order banning Chinese cars, before the elections.

Senator Brown is one among many government officials who have taken an ardent stance on the issue. Senator Brown has also labelled Chinese EVs particularly, as a dire threat to the American auto industry.

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“We cannot allow China to bring its government-backed cheating to the American auto industry”, Senator Brown said in a video on X.

Senator Brown also emphasized the need to combat China’s government-backed businesses masquerading as independent companies. The senator, hailing from Ohio, a state renowned for its automotive production, is seeking re-election for a fourth term this November.

Senator Brown’s statement also echoes calls from others to impose significant tariffs to prevent Chinese electric vehicles (EVs) from infiltrating the US market. The urgency surrounding this issue was highlighted in February when the White House started an investigation into cars imported from China and what kind of national security risk they pose.

The White House, on several occasions, has also voiced concerns over the technology embedded in Chinese-made cars, especially EVs. They have also issued statements of the possibility of these cars, collecting sensitive data on drivers and passengers, thereby posing security risks.

China’s position in the global automotive landscape, coupled with its ambition to become the leading exporter of vehicles, amplifies anxieties among US policymakers.

At the same time, American airlines have also urged the Biden administration to intervene in approving new flights between the US and China, citing China’s anti-competitive policies that have been very detrimental to US carriers.

The backdrop of these tensions is the ongoing trade dispute between the world’s two largest economies, which started back in 2018 with the imposition of tariffs by the Trump administration. Despite changes in leadership, the US has maintained these tariffs.

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(With inputs from agencies)

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