Tesla has publicly expressed its opposition to President Biden’s proposed restrictions on Chinese technology in US cars, citing the policy as an unnecessary regulatory burden. Tesla says the proposed rules, designed to mitigate security risks, could overwhelm manufacturers with compliance requirements that may not substantially improve safety.
As we have previously reported, the new policy proposal targets software central to autonomous driving and connectivity from Chinese sources, citing privacy and national security risks. In putting forward this proposal, the Biden administration claims that foreign adversaries could exploit technological backdoors in vehicles, potentially compromising the security of US infrastructure and citizens.
The proposed restrictions are expected to take effect in 2027, but they have already prompted significant debate within the industry. Among those who responded to the proposal is Tesla, who officially replied in a recent submission to the Commerce Department. According to the comments, first reported by The Telegraph, Tesla says the administrative burden that the new rules would place on automakers would lead to a “massive, and ultimately unnecessary regulatory reporting regime” that might create more issues than it solves.
Tesla’s legal counsel pointed out that the regulations’ requirements would involve detailed disclosures on all components and software linked to foreign sources, adding layers of paperwork and complexity to an already intricate supply chain. Tesla further argued that these demands could obstruct innovation and burden US automakers in ways that ultimately benefit competitors abroad.
Other automakers have echoed similar concerns. Polestar, backed by China’s Geely, warned that the restrictions could effectively block its entry into the US market. Ford raised concerns that the rules might limit imports from countries that the US considers allies, while Volkswagen called for preferential treatment for brands from friendly nations. These companies argue that such broad restrictions may not necessarily serve national security objectives while severely disrupting the auto industry.
This proposal follows the Biden administration’s decision to impose a 100% tariff on Chinese-made electric vehicles (EVs).
