It’s no secret that the US has been taking a hard stance against China, particularly with regard to high-tech products. That includes cars and car parts. On top of large tariffs on Chinese-built cars, the US government is planning on targeting Chinese components. According to Reuters, the White House is set to reveal the final rules banning certain car parts from Chinese companies (as well as Russian ones). Automakers including General Motors, Toyota, Hyundai and Volkswagen have concerns about the timeline for the rule.
Hyundai
Hyundai Motor Company was founded in 1967 by Chung Ju-yung, 20 years after the birth of the Hyundai Engineering and Construction Company. The automotive marque’s first model was the Cortina, birthed with the help of Ford in 1968, while its first self-developed car arrived the year after as the Pony. Since then, the company has found success with affordable cars and has consistently become known for reliability and value. Nowadays, its ventures vary from combustion, hybrid, all-electric, and hydrogen mobility solutions to robotics.
- Founded
- 29 December 1967
- Headquarters
- Seoul, South Korea
- Owned By
- Hyundai Motor Group
The Rule Focuses On Connectivity And Autonomy
The outlines of the rule were set last September. As the White House explained in its press release for the rule, the parts that would be banned would be anything regarding telecommunications, whether it’s Bluetooth, Wi-Fi, cellular, or other networks. It also would ban parts connected to partial autonomy and advanced driver aids. So that could include cameras, radar sensors and the components that manage all of that information and controls. The concerns from the White House are the possibilities for “surveillance and sabotage.”
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The initial plan for the rules was to have related software from China and Russia banned starting with 2027 model-year vehicles. Hardware would be banned starting with 2030 cars. Exemptions could be made for small, low-production companies. According to Reuters, multiple automakers, including those mentioned at the top, voiced concerns about the time frame and were urging the government to delay the effective dates by one to two years for the companies to meet the criteria. The final rule is expected to be revealed next week, so we’ll have to wait to see if it takes those concerns into account.
America’s Other Moves Against Chinese Cars
The US government has made rather comprehensive moves in trying to restrict China’s entrance into the American car market. Most aggressive may be its tariff against vehicles from China. The Biden administration brought said tariff up from 27.5% to 102.5%, effectively making it so that any cars from there would have their prices doubled. The Inflation Reduction Act also had measures to reduce parts content from China, only offering tax credits on vehicles with batteries sourced and built in North America and allied countries, as well as incentivizing assembly in those areas.
Related
Department Of Defense Alleges Ford And Tesla Battery Supplier Has Ties To Chinese Military
It sounds bad, and it’s not great, but it’s also not actually that bad.
The government is keeping tabs on Chinese companies it believes could be benefitting the Chinese military, too. Depending on the connections, it can simply cite them more as a warning and prohibition from defense contracts, such as it has with battery-supplier CATL, or issue stronger sanctions in more severe cases. The Trump administration is not expected to be any friendlier to China, but Reuters did get a quote from President-elect Trump’s camp saying he’s not opposed to Chinese automakers opening plants in the US.
Source:
Reuters
News Summary:
- Automakers Are Trembling In Fear Of Incoming Connected Car Ban
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