China Commerce Chamber Criticizes U.S. Restrictions on Connected Cars

The China Chamber of Commerce for Import and Export of Machinery and Electronic Products (CCCME) has expressed strong discontent with the Biden administration's recent actions that prohibit the sale and import of integrated hardware and software related to connected cars from certain countries, including China. This ban notably covers vehicle communication systems (VCS) and autonomous driving systems (ADS) that are essential for modern automobiles.

In a statement shared on their WeChat account, CCCME accused the United States of ignoring numerous reasonable evaluations and UN guidelines while rigidly targeting specific nations with these harsh measures.

The chamber argued that such policies are against the current momentum of international collaboration, stifling technological advancement and compromising efforts to establish a safe, clear, and globally accepted framework for vehicle technologies.

CCCME highlighted that these restrictions pose a serious risk to the global automotive supply chain and ultimately harm consumers on a worldwide scale.

They insisted that the security of connected vehicle technologies should be grounded in UN standards, particularly referencing UN R155 and UN R156 documents that prioritize compliance, transparency, and verifiability. The chamber accused the Biden administration of using national security fears as a pretext to hinder the competition and stifle products and technologies from specific nations.

They contended that this tactic is aimed at achieving technological supremacy, harming not only the global automotive industry but also the safety and reliability of international supply chains.

Both VCS and ADS are considered part of the category of information and communication technology (ICT) products, which face strict regulations across national borders. The CCCME stressed that fostering widespread international cooperation and recognizing agreements is vital for developing a cohesive global industrial system in this sector.

The chamber further warned that the U.S. government’s unilateral policies could result in severing technological exchanges and mutual cooperation with targeted nations. This could fail to guarantee absolute security and eventually exclude the U.S. from advancements in cutting-edge connected car technology, potentially hindering its own technological progress.

Connected vehicle technology’s purpose is to enable communication between vehicles and infrastructure, aiming to enhance road safety, lower traffic incidents, alleviate congestion, and increase transport efficiency. In contrast, CCCME asserted that the Biden administration seems to prioritize self-serving interests over the overall growth and development of the industry, thereby eroding confidence in the advancement of domestic smart connected vehicles and autonomous driving technologies. This could slow progress, inflate costs, and ultimately disadvantage consumers.

The chamber pointed out that the creation, storage, and transfer of vehicle data, which is driven by ICT, is already influenced by an international consensus on security protocols. A global regulatory framework is currently in development, and ongoing cooperation is critical for achieving compliance.

CCCME proposed that the concerns raised by the Biden administration should be resolved through dialogue and collaboration among nations rather than through import bans and trade restrictions.

Given these concerns, the chamber called upon the Biden administration to move away from Cold War mentalities and to align its policies with the global progression of VCS and ADS technologies. It urged the U.S. to enhance the global regulatory environment, improve data security, and work together towards shared goals like improved road safety, decreased accident rates, reduced congestion, and increased transport efficiency.

Other organizations, including the China Association of Automobile Manufacturers and the China Semiconductor Industry Association, also voiced strong opposition to the recent U.S. trade restrictions on China's technology sector.

On the same day, Guo Jiakun, a spokesperson for the Chinese Foreign Ministry, condemned these U.S. actions as a typical case of economic coercion and hegemonic bullying, expressing strong dissatisfaction and solid opposition to the enhanced restrictions.

China, U.S., Technology