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US blocks Chinese car companies from market

US Congress drafts bill to ban Chinese automakers. Software ban by 2027, spare parts by 2030. Fines up to $1.5 million.

Charlotte Hernandez
ByCharlotte Hernandez- Senior Editor
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The US Congress has drafted a new bill that could completely close the American market to Chinese automakers.

According to Oxu.Az, citing Carscoops, the initiative was put forward by Congressman John Moolenaar, chairman of the House Select Committee on China, and Congresswoman Debbie Dingell.

The document proposes a total ban on the import, assembly, sale, and introduction into the country of vehicles connected to networks associated with states deemed foreign adversaries. This includes countries such as China, Russia, North Korea, and Iran.

Major automakers operating in the US market have supported the bill. Specific deadlines are set: from January 1, 2027, vehicle software from the mentioned countries will be banned, and from January 1, 2030, their spare parts will be prohibited.

The Secretary of Commerce is tasked with developing a compliance verification procedure, as well as a mechanism for issuing binding decisions and consultations to ensure the industry can meet the new requirements. Each violation will result in a fine of at least $1.5 million or five times the value of the transaction, whichever is greater.

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