China Urges US to Halt ‘Unreasonable Suppression’ of Its Firms Amid Ongoing Auto Dispute, Reports Reuters

BEIJING (Reuters) – China has called on the United States to cease what it terms the “unreasonable suppression” of its companies, following proposals by the U.S. to ban Chinese software and hardware in vehicles due to national security concerns.

A spokesperson for the Chinese commerce ministry stated that the U.S. actions lack a factual basis, violate the principles of market economy and fair competition, and represent a typical protectionist strategy.

The U.S. Commerce Department recently announced plans that would require American and other major automakers to eliminate essential Chinese software and hardware from internet-connected vehicles and navigation systems in the U.S.

According to the spokesperson, this action “seriously affects the normal cooperation between China and the United States in the field of connected vehicles, disrupts the global automotive supply chain, and harms the interests of American consumers.”

The proposed restrictions would effectively exclude Chinese cars and trucks from the U.S. market, with particular concerns regarding data collection by Chinese connected vehicles about U.S. drivers and infrastructure, as well as potential foreign interference in vehicle operations.

The ongoing tensions between China and the U.S. have included disputes over national security, with the U.S. imposing significant export bans on semiconductors. This latest proposal marks a notable escalation in American restrictions on Chinese vehicles, software, and components.

The spokesperson emphasized that “the U.S. should immediately revoke its restrictive measures.”