Tesla Criticizes Proposed U.S. Ban on Chinese Technology in Vehicles

Tesla has expressed strong opposition to the Biden administration’s proposed ban on Chinese technology in U.S. vehicles, arguing that such regulations would impose unnecessary burdens on automakers and software developers.

In a recent comment submitted during the consultation period for the new rules, Tesla stated that the proposed ban would create a “massive, and ultimately unnecessary regulatory reporting regime” and place excessive demands on software developed by non-U.S. entities. Business Insider

The Biden administration’s plan aims to prohibit Chinese and Russian technology from internet-connected cars, citing national security and privacy concerns. The proposed regulations would affect vehicle software and autonomous systems, potentially halting Chinese self-driving car testing in the U.S. Business Insider

This initiative is part of broader U.S. efforts to curb China’s expanding automotive industry, including a proposed 100% tariff on Chinese electric vehicles. Tesla, which has significant operations in China, could face risks if China retaliates. Despite previous warnings about Chinese EV competition, CEO Elon Musk has criticized the latest regulatory measures, stating that neither he nor Tesla requested such tariffs. Business Insider

Tesla plans to introduce its Full Self-Driving system in China next year, contingent on regulatory approval, amidst growing competition from local Chinese brands like Nio and Xpeng.