A new survey found that US consumers support the entry of Chinese car brands into the market due to their lower costs, better performance, battery technology and advanced features. Given that the average new electric car in the US now costs nearly $50,000, it’s not hard to see why. However, if a new law is passed, it will ensure that Americans never have that option.
The Biden administration issued a sweeping executive order in January 2025 that banned all Chinese automakers from selling passenger vehicles in the United States, citing national security concerns over data collection. Now Republican Senator Bernie Moreno has announced that he will introduce legislation next month that goes far beyond the existing ban on Chinese automakers.
His proposed legislation would completely seal off the US, covering hardware, software and even partnerships with Chinese automakers. “There will be no Chinese car 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 telecommunications company that U.S. regulations ban from accessing the country’s telecommunications infrastructure. “We will prevent the cancer from entering our market,” he said, adding that he hopes Latin America, Mexico, Canada and Europe will adopt the same standards.
The Chinese embassy in Washington objected, calling the legislation “typical protectionism and economic coercion” that violated fair competition. While there may be some truth to the security concerns, President Trump’s “America First” policy also plays a major 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 price reduction. Policies that curb competition in the name of safety or revive domestic production are likely to have a financial and technological impact on consumers, at least in the short term.
