China urges US to stop ‘unreasonable suppression’ amid proposed ban of Chinese software, hardware

Following the proposed move by the United States to ban Chinese software and hardware from cars on US roads, China has urged the United States to stop its ‘unreasonable suppression’ of its companies, reported Reuters.

“The [move by the United States] has no factual basis, violates the principles of market economy and fair competition, and is a typical protectionist approach,” a spokesperson for the Chinese commerce ministry said in a statement.

This action “seriously affects the normal cooperation between China and the United States in the field of connected vehicles, disrupts the global automotive industry supply chain, and harms the interests of United States consumers. The US should immediately revoke its restrictive moves,” the statement continued.

Earlier this week, the United States commerce department issued a notice of proposed rulemaking (NPRM) that would “prohibit the sale or import of connected vehicles that incorporate certain technology and the import of particular components themselves from countries of concern, specifically the People’s Republic of China (PRC) and Russia” if finalised, it said in a statement.

The latest restriction on Chinese software and hardware would effectively ban Chinese-made vehicles from the US market, due to concerns surrounding data collection by Chinese companies from US drivers and infrastructure, and the potential foreign manipulation of vehicles.

This is the latest escalation in restrictions by the United States against China after US president Joe Biden announced new tariffs on China goods, including duty for EVs which has jumped from 25% to 100%.

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