US Senator Urges Biden to Ban Chinese Electric Vehicles
Influential US Senator Sherrod Brown (D–Ohio) has called on President Joe Biden to ban electric vehicles from Chinese brands, citing them as an “existential threat” to the US automotive industry. Brown’s concern stems from heavily subsidized Chinese EVs potentially entering established markets, such as the European Union, where brands like BYD and MG have already been selling for years.
Government subsidies for green technology companies in China have been found to be prevalent, with the Kiel Institute reporting that BYD received almost $4 billion in direct help from the Chinese government in 2022. This has led to the EU launching an anti-subsidy investigation into Chinese EV imports, with a threat of retroactive tariffs being imposed.
American automakers like Ford and Tesla have expressed concerns about Chinese automakers becoming their main competitors, especially as Chinese EVs begin entering markets like Mexico. Senator Joshua Hawley (R-Mo.) has also called for a tax increase on Chinese EVs, proposing to raise the base tariff from 2.5 percent to 100 percent to prevent Chinese EVs from undermining the US auto industry.
Brown is not only worried about the economic impact of Chinese EVs but also the security risk posed by China having access to data collected by connected cars. He is urging the Biden administration to consider banning Chinese EVs to protect the potential of the US EV market, suggesting the use of Section 421 (China Safeguard) of the Trade Act of 1974 as a possible solution.
With the threat of Chinese EVs on the rise, it remains to be seen how the Biden administration will respond to calls for action to protect the US automotive industry. Stay tuned for further developments on this pressing issue.
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