The Mexican government has raised a series of concerns with the U.S. Department of Commerce over the Biden administration’s proposal to ban certain Chinese software and hardware in connected cars on U.S. roads.

The move comes just over a month after US President Joe Biden announced what the White House called “strong action to protect America from the national security risks associated with connected vehicle technologies from countries of concern.” “.

In a information sheet Released in late September, the White House noted that the Commerce Department was “is issuing a notice of proposed rulemaking that, if finalized as proposed, would prohibit the sale or importation of connected vehicles incorporating certain technologies and the importation of components individuals themselves from countries of concern, particularly the People’s Republic of China and Russia.

In a filing Monday with the Department of Commerce, Mexico’s Ministry of Economy (SE) said the proposed ban on Chinese software and hardware in connected cars on U.S. roads could have a “substantial impact on the Mexican automobile industry.

“Economically, this poses potential trade barriers, disruptions in supply chains, increased production costs and a possible risk of reduced direct and indirect employment,” the SE said.

The Economy Ministry also said the proposal could violate trade rules set out in the AEUMC and “result in an increase in production costs due to the change of suppliers of automotive parts and components within the supply chain.” pre-planned supply of the automotive industry.

The proposed ban on Chinese connected car technology in the United States would not only affect Chinese companies, but also any automaker that uses Chinese technology in its vehicles.

Al Jazeera reported that the planned regulations would “require Americans and other major automakers, in coming years, to remove key Chinese software and hardware from vehicles in the United States.”

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Automakers from the United States and various other countries have factories in Mexico, and they could soon be joined by Chinese automakers if companies such as BYD follow through on their investment projects.

Reuters reported that the proposal would “effectively ban the importation of Chinese-branded vehicles (into the United States) – even if they were assembled in Mexico.”

The news agency said automakers and technology groups separately asked the Biden administration on Monday for changes to the proposed ban on key Chinese software and hardware for connected cars, as well as additional time before the rule comes into force. One of these groups, the Alliance for Automotive Innovation, represents General Motors, Toyota, Volkswagen and Hyundai, all of which make cars in Mexico.

Polestar, a Swedish car manufacturer majority owned by the Chinese company Geely, said that the proposed rule would even ban the sale of vehicles manufactured in South Carolina.

The Commerce Ministry hopes to finalize the proposal by January 20. Bans on connected car software from China and other “countries of concern” are expected to take effect starting in model year 2027. The hardware ban would take effect starting in model year 2030, i.e. in January 2029.

BYD, one of the world’s two largest electric vehicle makers, is the largest Chinese automaker planning to open a factory in Mexico. The company’s CEO for the Americas, Stella Li, has repeatedly said that the proposed factory in Mexico would make electric vehicles only for the Mexican market and not for export to the United States or elsewhere.

BYD’s general manager for Mexico, Jorge Vallejo, said the company plans to find a location for its proposed factory by the end of the year.

The U.S. government is committed to protecting the U.S. electric vehicle industry relatively cheap imports and is concerned about the ability of Chinese connected cars to collect data and thus compromise national security.

“Connected vehicles offer many benefits – from promoting vehicle safety to helping drivers navigate – but they also pose new and growing threats,” the White House said last month.

“These technologies include computer systems that control vehicle movements and collect sensitive data about drivers and passengers, as well as cameras and sensors that activate automated driving systems and record detailed information about U.S. infrastructure. More than ever, vehicles are directly connected to our country’s digital networks. As the Department of Commerce has found, increasing vehicle connectivity creates opportunities to collect and exploit sensitive information,” he said.

Former US President Donald Trump – who launched a trade war with China in 2018 – is also determined to protect the American automobile industry, commit to imposing high tariffs on all vehicles made in Mexico if he wins next week’s presidential election and returns to the White House in January.

With the reports of Reuters