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Washington — The U.S. Department of Commerce is proposing a new rule aimed at restricting car imports from China, with a focus on limiting Chinese software and hardware used in cars sold in the United States. This will directly affect automakers such as General Motors (GM) and Ford, which currently sell cars assembled in China, such as the Buick Envision and Lincoln Nautilus. In the first half of 2024, GM sold about 22,000 Envisions, while Ford sold 17,500 Nautilus SUVs in the U.S. market.
Under the new rules, GM and Ford may need to stop production in China for U.S. sales, potentially moving their business elsewhere. The rules will also affect other automakers, including Volvo Cars and BYD, which may need to seek special authorization from the Commerce Department to continue selling vehicles or parts involving Chinese-made technology. Volvo and other companies are in discussions with the department to mitigate potential risks.
The proposed rules reflect growing U.S. concerns about security risks associated with Chinese technology, and some exceptions may be granted depending on where the software is developed. The automakers are currently evaluating the potential impact of the changes on their U.S. operations.