A new survey found that US consumers support Chinese auto brands entering the market, thanks to their lower costs, better performance, battery tech, and modern features. With the average new US EV car now costing close to $50,000, it’s not hard to see why. However, a new bill, if passed, will ensure Americans never get that option.
The Biden administration imposed a sweeping regulation in January 2025, blocking all Chinese automakers from selling passenger vehicles in the US, citing national security concerns around data collection. Now, republican Senator Bernie Moreno has announced that he will introduce legislation next month to go well beyond the existing ban on Chinese automakers.
His proposed legislation would seal off the US entirely, covering hardware, software, and even partnerships with Chinese automakers. “There will not be a Chinese automobile here,” he said at an Automotive Forum event ahead of the New York Auto Show.
Is this about safety or competition?
According to a Reuters report, Moreno compared Chinese automakers to Huawei, the Chinese telecom company that US rules bar from the country’s telecommunications infrastructure. “We’re going to prevent the cancer from coming into our market,” he said, adding that he hopes Latin America, Mexico, Canada, and Europe adopt the same standards.
The Chinese Embassy in Washington pushed back, calling the legislation “typical protectionism and economic coercion” that violates fair competition. While there might be some truth to the safety concerns, President Trump’s “America First” policy is also playing a big role here.
What does this mean for buyers?
As always, it is the consumer who suffers the most. Healthy competition is essential for innovation and for prices to decline. Policies that curb competition in the name of security or reviving domestic manufacturing will likely impact consumers financially and technologically, at least in the short term.