Senate punts bill to permanently ban Chinese cars until after midterm elections

WASHINGTON (AP) — Legislation to permanently ban the sale of Chinese vehicles in the United States stalled out on Wednesday as senators struggled to seal an agreement, virtually guaranteeing that the bill will have to wait until after the November elections.The bipartisan bill, sponsored by Republican Sen. Bernie Moreno of Ohio and Democratic Sen. Elissa Slotkin of Michigan, aims to prevent China’s auto industry from gaining a foothold in the U.S.

It would ban the import, manufacture and sale of internet-connected vehicles, software and hardware linked to China or other foreign adversaries, including Russia and North Korea.Chinese automakers are already effectively banned from selling or building vehicles in the U.S. under a policy put into place by the Biden administration, but senators are hoping to more permanently shut the door.The summit between Chinese President Xi Jinping and President Donald Trump in Washington last week, which focused in part on trade between the world’s two largest economies, had given the legislation renewed momentum. Slotkin said nearly every senator was prepared to support it, and they had initially planned to seek passage last week without a formal roll call vote.Senators delayed action to continue negotiations with the lone holdout, Republican Sen.

Rand Paul of Kentucky, who argued the legislation could unfairly sweep in Mercedes-Benz. The bill would bar vehicles made by companies with more than a 15% ownership stake from Chinese entities. Mercedes-Benz has nearly 20% passive Chinese ownership.Supporters say they will try again after the elections.

But the delay is a setback for bipartisan legislation that has drawn support from automakers and labor unions as Washington grapples with the growing global reach of China’s auto industry — and concerns about potential surveillance technology.“It is literally a driving spy machine on wheels,” Slotkin said of Chinese vehicles. “All of that data and all of that information goes back to Beijing.”Lawmakers see threat from Chinese EVsLawmakers and analysts have warned of dire consequences if Chinese EVs should become available in the U.S.“I am concerned about what can happen to the U.S. automobile industry with the Chinese electric vehicles,” said Republican Sen.

Steve Daines in an interview with The Associated Press before the Trump-Xi summit. “They are remarkable, high quality… The bipartisan bill, sponsored by Republican Sen.

Chinese automakers are already effectively banned from selling or building vehicles in the U.S. The summit between Chinese President Xi Jinping and President Donald Trump in Washington last week, which focused in part on trade between the world’s two largest economies, had given the legislation renewed momentum. Senators delayed action to continue negotiations with the lone holdout, Republican Sen.