US bill targets China risks in auto sector

Washington, Aug 29 (IANS) Two US lawmakers have introduced bipartisan legislation requiring the Commerce Department to examine national-security and economic risks arising from Chinese involvement in the American automobile industry.

The Automotive National and Economic Security Act of 2026 was introduced by Republican Representative Diana Harshbarger of Tennessee and Democratic Representative Debbie Dingell of Michigan.

The measure would direct the commerce secretary to conduct a comprehensive study of activities involving US automotive manufacturers and companies controlled by foreign adversaries.

Although the bill applies broadly to countries classified under US law as foreign adversaries, its sponsors focused primarily on China while announcing the legislation.

“China has a playbook, and we’ve watched them run it on critical minerals, shipbuilding, and batteries,” Harshbarger said.

“Now they’re setting their sights on the global automotive market, building out their industrial base with state subsidies and flooding markets with artificially cheap products to undercut American manufacturers,” she said.

Harshbarger said modern vehicles’ increasing reliance on software and internet connectivity had transformed the issue from a traditional trade concern into a potential national-security and data-security challenge.

“As vehicles become more connected and software-driven, that strategy isn’t just an economic threat, it’s a national security threat and a risk to the data of every American behind the wheel,” she said.

The proposed study would examine foreign ownership and state-directed investment in US automobile manufacturers, according to the text of the bill.

It would also cover joint ventures, subsidiaries, contract-manufacturing arrangements and commercial partnerships involving American manufacturers and companies controlled by foreign adversaries.

Commerce officials would be required to assess transfers of critical and emerging technologies, including artificial intelligence, semiconductors, advanced manufacturing and clean-energy storage systems.

Other covered fields include cybersecurity technology, autonomous-driving systems, robotics, communications technology and electronic components used in electric-vehicle batteries.

The department would examine whether the arrangements adversely affect US national security, economic competitiveness or the protection of intellectual property.

It would also investigate involvement by foreign militaries, political parties, state-owned enterprises, sovereign wealth funds and other government-controlled investment vehicles.

The definition of covered activity includes direct or indirect ownership in a manufacturer, technology-sharing agreements, research partnerships, licensing arrangements and investments in companies controlled by foreign adversaries.

Manufacturers covered by the measure would include companies in the United States that manufacture, assemble or import passenger vehicles. It would also cover businesses handling vehicle hardware and software.

Dingell, who represents Michigan, said the legislation was intended to protect American workers and reduce dependence on China.

“I’m a car girl—I will always fight for our auto workers and this critical industry that is the backbone of America’s economy,” she said.

“And we must continue our efforts to decrease our reliance on China and create a level playing field,” Dingell added.

The commerce secretary would consult other relevant federal agencies while conducting the study.

Within two years of the legislation becoming law, the department would have to submit its findings to the House Energy and Commerce Committee and the Senate Commerce, Science and Transportation Committee.

An unclassified version would also have to be published on the Commerce Department’s website. Confidential business information, trade secrets and information whose disclosure could harm national security would be withheld.

–IANS

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