US Lawmakers Propose $1.5M Penalties and Ban on Chinese Connected Vehicles by 2027

The US is taking aggressive steps to block Chinese-connected vehicles from its market. A newly proposed bill seeks to impose civil penalties of at least $1.5 million per violation and ban the importation, manufacture, sale, or introduction of connected vehicles linked to China or other designated adversaries.

The Connected Vehicle Security Act, introduced by Select Committee on China chairman John Moolenaar and Congresswoman Debbie Dingell, targets vehicles originating from or controlled by covered foreign adversaries, including China, Russia, North Korea, and Iran. The bill prohibits all connected vehicle software and hardware tied to these countries starting January 1, 2027.

Additionally, the legislation directs the Secretary of Commerce to establish a declaration-of-conformity process and a binding ruling and advisory opinion mechanism to enforce compliance. Each violation would result in civil penalties of at least $1.5 million.

Legislation Codifies Existing Restrictions

The bill aims to formalize regulations first implemented by former President Joe Biden in January 2025, which already prohibit connected vehicle software and hardware linked to China and Russia. The rationale behind these measures is to safeguard the US auto industry from what lawmakers describe as an existential threat posed by Chinese overproduction and unfair trade practices.

“China cheats in every industry, and in autos it is overproducing vehicles and components, and selling them for cheap in hopes they will put our companies out of business. In some cases, Chinese companies, including CATL and BYD, use slave labor to undercut the fair wages of hardworking Americans. These companies should not be allowed to do business in America, and their products shouldn’t be in our cars or threatening our infrastructure.”

Industry Support and Broader Concerns

Major US car manufacturers are backing the proposed legislation, with Reuters reporting their “serious concerns about China’s ongoing efforts to dominate global automotive manufacturing and to gain access to the U.S. market.” The move reflects growing unease among American automakers about China’s expanding influence in the automotive sector.

While the bill does not explicitly mention specific models or manufacturers, it broadly targets any connected vehicle technology linked to the listed adversarial nations. The proposed penalties and ban are designed to send a strong message to foreign automakers while reinforcing domestic industry protections.