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US car giants demand permanent ban on Chinese rivals
President Donald Trump has been asked to consider a total ban on an ‘urgent threat’, with Australia being pointed to as to what can go wrong if he doesn’t.September 7, 2026 - 6:13PM
The unprecedented growth of Chinese car brands in Australia could lead to a permanent ban on Chinese car sales in the US.
America’s Alliance for Automotive Innovation, a collective that represents major manufacturers including Ford, General Motors and Stellantis, says 11 million jobs in the US car industry are at risk as brands such as BYD, MG and Geely attempt to enter the US.
The unprecedented growth of Chinese car brands in Australia could lead to a permanent ban on Chinese car sales in the US. Picture: AFP
Noting the growth of brands such as BYD in Australia, where the Chinese company ranks second only to Toyota in monthly sales reports this year, AAI President John Bozzella asked congress “to enact a permanent ban on the sale, import and manufacture of Chinese connected vehicles”.
Bozzella called out what he described as “a well-documented pattern of unfair trade, subsidies, intellectual property theft and surveillance” that threatens the US car industry.
“This behaviour is a feature of the Chinese approach and especially acute when it comes to China’s strategy to dominate global automotive manufacturing and critical supply chains,” he said.
“Right now, Chinese automakers are dumping subsidised vehicles with connected software and hardware around the world.
Chinese automakers have flooded Australia’s car market in recent years. Picture: AFP
“China is capturing market share in Europe, Australia, Southeast Asia, Mexico and South America with vehicles capable of collecting, processing and transmitting sensitive vehicle and consumer data to the Chinese Communist Party.
“This hasn’t happened inside the US yet, but given the scale and urgency of this threat, we urge you to enact a Chinese vehicle, software and hardware ban before adjourning this year and make this policy the law of the land.”
The Alliance says “a permanent ban on Chinese vehicles and high-risk hardware and software in the 119th Congress will send a clear and bipartisan message that China’s strategy to dominate global automotive manufacturing will be met with a national security policy response from the American government”.
The issue has rare bi-partisan support in US Congress with both the majority of Republicans and Democrats understood to be in favour of a ban. While US President Donald Trump has made the protection of the American auto industry one of the key planks of his second term.
China’s embassy in the US has opposed calls to restrict trade between the nations.
US manufacturers have close ties to China, where companies such as Ford have factories that build a range of cars including a hybrid-powered Bronco SUV that has been linked to Australia.
Ford chief executive Jim Farley toured Australia in March, when he sampled rival product from the likes of BYD and GWM, before telling reporters he was “here to beat the Chinese”.
The US has already passed laws banning Chinese tech firms from operating in the US, following fears of state-sponsored surveillance.
Former AFP cyber security expert Alastair MacGibbon recently told Channel 7 that Australia should take a similar approach or face “catastrophic” consequences.
Merriden Varrall, chief executive and founder of consultancy firm Vantage Geopol, said “Australia matters to Chinese carmakers”.
“Australia is an open, developed, competitive, right-hand-drive market with no domestic vehicle manufacturing industry to protect,” she said.
“That makes it a useful test of whether Chinese brands can build trust, dealer networks, parts supply, aftersales support, and long-term credibility in a mature market.
“So ‘winning’ in Australia is probably less important for volume than for validation. If Chinese brands can succeed here, they can point to Australia as evidence that they are not just low-cost exporters selling autos of dubious quality into developing markets.
“They are credible competitors in a sophisticated, open, and demanding car market. For China’s car industry, that supports the bigger ambition: global brand recognition, technological credibility, commercial embeddedness and influence in the future automotive system.”
