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U.S. Automakers Urge Congress to Block Chinese-Backed Car and Battery Plants, Keep Import Tech Ban

Industry leaders cite Chinese subsidies plus supply‑chain control as drivers of oversupply that could trigger dumping and security risks.

The new GM logo is seen on the facade of the General Motors headquarters in Detroit, Michigan, U.S., March 16, 2021. Picture taken March 16, 2021.  REUTERS/Rebecca Cook

Overview

  • The Alliance for Automotive Innovation told a House hearing that China poses a “clear and present threat” to the U.S. auto industry.
  • The group pressed lawmakers to retain a Commerce Department rule curbing imports of Chinese information and communications technology, which effectively blocks cars from Chinese manufacturers.
  • Industry representatives warned that heavy subsidies enable chronic oversupply abroad, creating a recipe for dumping that U.S. companies cannot match even with domestic production.
  • Committee chair John Moolenaar urged Congress to codify existing prohibitions into law and noted China exported about 6 million vehicles last year at below‑market prices.
  • Lawmakers and industry figures flagged national‑security risks, including concerns that vehicles using Chinese software or components could be disabled in a crisis.