According to a July 18 report by PCMag, a bipartisan group of lawmakers in Congress is advancing legislation targeting Chinese connected vehicles. The bill would restrict vehicles linked to Chinese companies from entering the U.S. market, addressing not only complete vehicles but also components, software, and their associated supply chains.
The proposal, called the Connected Vehicle Security Act of 2026, would cover not only vehicles manufactured in China but potentially also those designed or controlled by Chinese companies or containing critical technology supplied by them. Connected vehicles manufactured or designed by companies from Iran, North Korea, and Russia would also be subject to restrictions.
Supporters argue that connected vehicles contain cameras, sensors, location systems, and remote communications technology, and that they could pose a national security threat if their data or control systems fell into the hands of foreign governments. Critics, however, note that U.S. automakers also collect large amounts of consumer data, while Congress has made little progress toward comprehensive protections for vehicle privacy.
Bipartisan bill expands restrictions from complete vehicles to the entire supply chain
The bill was introduced in the Senate as S.4429 by Republican Sen. Bernie Moreno of Ohio and Democratic Sen. Elissa Slotkin of Michigan.
Democratic Rep. Debbie Dingell and Republican Rep. John Moolenaar, both of Michigan, subsequently introduced a companion House version, H.R.8730. The bill remains under consideration and has not yet passed Congress.
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Under the proposal, the restrictions would cover the importation, manufacture, sale, resale, and movement of affected vehicles through interstate commerce. Compared with existing connected-vehicle regulations, the new bill would broaden the scope of scrutiny to encompass the entire supply chain, from vehicle design and software systems to hardware components.
Speaking at a discussion hosted by the American Enterprise Institute in Washington, Moreno said modern connected vehicles have extremely powerful data-collection capabilities. He described the risk as “TikTok on steroids” and warned that Chinese companies could be compelled under Chinese law to provide data or technical assistance to the government.
Moolenaar similarly said the United States cannot focus only on where a vehicle is manufactured. It must also examine the source of its software, its remote communications capabilities, and which companies ultimately control it.
The Associated Press previously reported that when the U.S. Commerce Department launched its connected-vehicle security review, Commerce Secretary Gina Raimondo described modern vehicles as “smartphones on wheels.” Such vehicles can record a driver’s location, personal information, and biometric data, while also receiving remote instructions over the internet. U.S. officials fear that if large numbers of connected vehicles were manipulated simultaneously from abroad, they could pose risks to transportation systems and critical infrastructure.
Polestar denied approval: US production may not be enough for an exemption
U.S. restrictions on Chinese connected-vehicle technology did not begin with the new legislation.
During the final period of the Biden administration, the government issued connected-vehicle rules restricting software and hardware originating from China and Russia from entering the U.S. automotive market. The policy has continued under the Trump administration and primarily targets vehicle technologies capable of connecting to external networks through Bluetooth, Wi-Fi, cellular communications, or satellite systems.
In June 2026, the U.S. Commerce Department denied electric vehicle manufacturer Polestar a special authorization. As a result, the company will be unable to continue selling new vehicles in the United States beginning with the 2027 model year.
Polestar is headquartered in Sweden but is controlled by China’s Zhejiang Geely Holding Group. The Polestar 3 sold in the United States is manufactured in South Carolina, while the Polestar 4 is assembled in South Korea. However, the company’s ownership, software systems, and ties to China still brought it under U.S. connected-vehicle restrictions.
Polestar subsequently decided not to appeal the U.S. government’s decision and said it would direct more resources toward the European market. The decision has also raised concerns for U.S. dealers and existing owners regarding vehicle resale values, after-sales service, and compensation for dealership rights.
By contrast, Volvo, which is also controlled by Geely Holding, received U.S. government approval to continue selling vehicles in the United States. This indicates that U.S. regulators may evaluate individual brands differently based on their corporate governance, data-handling practices, and technical security measures.
Restrictions could extend to the border, affecting vehicles from Canada and Mexico
PCMag reported that the bill defines “importation” broadly, including bringing an affected vehicle into the United States by any means.
Moreno said that if the bill were implemented in its current form, travelers driving Chinese-brand vehicles from Canada or Mexico into the United States could be turned back at the border. The restrictions could apply even when a vehicle is only entering the country temporarily and is not intended for sale.
Slotkin and Democratic Rep. Haley Stevens of Michigan have also introduced a separate measure, the Protecting America from Chinese Cars Act, which seeks to more explicitly prohibit affected vehicles from entering the United States through land-border crossings. However, the proposal has so far attracted relatively few co-sponsors.
The issue has drawn particular attention in North America. Chinese automakers have expanded rapidly in Mexico in recent years, capturing significant market share through lower prices and extensive features. However, after Mexico began imposing 50 percent tariffs on some Chinese vehicles in January 2026, imports declined substantially.
Canada has taken a different approach. The Canadian government previously imposed a 100 percent tariff on Chinese electric vehicles, but the government led by Prime Minister Mark Carney later reached a new arrangement with China allowing a limited number of Chinese electric vehicles to enter Canada at lower tariff rates.
Moreno criticized Canada’s limited reopening of its market to Chinese electric vehicles, arguing that it could allow Chinese vehicles to move indirectly closer to the U.S. market through North American supply chains.
The Washington Post previously reported that U.S. automakers and labor unions broadly support stronger restrictions. They argue that Chinese companies benefit from extensive industrial subsidies and that U.S. automakers are not competing merely against individual corporations, but against an entire industry supported by state policy.
Vehicle privacy concerns are not limited to Chinese brands
Although the bill’s supporters have focused on the possibility that the Chinese government could gain access to vehicle data or remotely control automobiles, privacy concerns surrounding connected vehicles are not unique to Chinese brands.
Modern vehicles manufactured in the United States and other countries also collect information about drivers’ locations, speeds, driving habits, communications, and in-vehicle entertainment systems. Some vehicles may collect facial, voice, and other biometric information and share data with insurance companies, advertisers, or other third parties.
In a 2023 privacy review of 25 automobile brands, the Mozilla Foundation found that none of the brands it examined met its privacy standards. Subsequent investigations by the offices of Democratic Sens. Ron Wyden and Ed Markey also found widespread deficiencies in data protection throughout the industry, including among U.S. automakers.
Responding to questions from PCMag, Moolenaar acknowledged that the United States needs a system to protect consumer privacy but emphasized that there is a “fundamental difference” between the U.S. government and the Chinese government.
Moreno said vehicle data collection should not be enabled by default, forcing consumers to navigate multiple pages to opt out. He advocated an opt-in system under which companies could collect or share data only after vehicle owners had explicitly provided their consent.
Congress, however, has failed for years to pass a comprehensive federal privacy law covering all industries. The SECURE Data Act introduced in 2026 is also narrower than previous proposals. It has been introduced only in the House and has so far received limited support.
In practical terms, the Connected Vehicle Security Act is both a national security measure and a form of industrial policy. Supporters want to prevent Chinese automakers from using their advantages in cost, technology, and supply chains to enter the U.S. market. Opponents worry that sweeping restrictions could reduce competition, limit consumer choice, and obscure the data-privacy problems that also exist within the U.S. automobile industry.
Ford Motor Co. Executive Chairman Bill Ford recently said the United States cannot expect to keep Chinese vehicles out forever. Domestic automakers, he said, must improve their technological and cost competitiveness and prepare for the possibility of direct competition in the future.
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