Senate Panel to Vote on Bill Tightening Ban on Chinese-Connected Vehicles

Polestar says all future U.S. models from model year 2027 onward are affected by the existing connected-vehicle rule.

A Polestar car is displayed in the showroom at a Polestar dealership in Beverly Hills, Calif., on June 26, 2026. Electric car maker Polestar will be barred from selling new vehicles in the United States starting with the 2027 model year after the Commerce Department cited national security concerns under new connected-vehicle regulations. Justin Sullivan/Getty Images

The Senate Commerce Committee is set to vote July 15 on bipartisan legislation that would tighten U.S. restrictions on Chinese-connected vehicles, software, and hardware entering the American market.

The committee’s agenda lists S. 4429, the Connected Vehicle Security Act of 2026, among the bills scheduled for a full committee executive session. The bill was introduced by Sens. Bernie Moreno (R-Ohio) and Elissa Slotkin (D-Mich.).

The measure would write into law and expand parts of an existing Commerce Department rule that restricts certain connected vehicles and related hardware or software linked to China or Russia. The Bureau of Industry and Security (BIS) issued that rule in January 2025, and it took effect on March 17, 2025.

Connected vehicles can communicate with external networks and rely on software, sensors, vehicle-connectivity systems, and automated-driving systems. U.S. officials have said such systems can collect sensitive data or be accessed remotely if controlled by companies subject to Beijing or Moscow.

Moreno and Slotkin’s bill would prohibit the importation, manufacture, sale, and resale of connected vehicles, software, and hardware linked to China or other foreign adversaries, including products from joint ventures or entities under their control, according to Moreno’s office. The bill would also give the Commerce Department authority to identify and block high-risk vehicle technologies, components, and transactions that threaten U.S. economic or national security.

Vehicle and software restrictions would take effect in 2027, while hardware restrictions would take effect in 2030, aligning the bill with the existing BIS connected-vehicle rule, Moreno’s office said.

Moreno told The Epoch Times that his top priority is protecting the U.S. auto industry and autoworkers from what he called “unfair foreign predators.”

“Chinese cars would be a cancer to the American market as these CCP subsidized predators are rapidly dominating global markets as Western governments are too weak to fight back,” Moreno said in a statement.

Existing Rule Already Targets China, Russia

The Biden-era rule already prohibits certain transactions involving Vehicle Connectivity System hardware and covered software designed, developed, manufactured, or supplied by persons owned by, controlled by, or subject to the jurisdiction or direction of China, including Hong Kong and Macau, or Russia.

BIS said the rule applies to model year 2027 vehicles for software-related restrictions and model year 2030 vehicles for hardware-related restrictions, with a Jan. 1, 2029, date for non-model-year components.

The agency said companies from China and Russia may be compelled to share data or allow remote access to connected vehicles operating in the United States.

The final rule also reaches some vehicles assembled outside China if covered software or hardware is supplied by a China-linked entity. BIS gave examples involving Chinese companies supplying software, hardware, prototyping, contract assembly, or modules routed through third countries.

In one example, BIS said a U.S. company’s import or sale of vehicles prototyped and tested by a Chinese joint venture would be prohibited unless a general or specific authorization applies. In another, BIS said a U.S. company importing vehicles assembled in a third country by a Chinese automotive contract assembler would also face a prohibited transaction unless an authorization applies.

Lawmakers Cite Auto Industry, Data Risks

Slotkin said Chinese cars pose a threat to U.S. national security and Michigan’s economic security, calling them “surveillance packages on wheels” that can collect information on Americans and sensitive sites.

The bill drew support from the United Auto Workers (UAW), General Motors, the CAR Coalition, and American Compass, according to Moreno’s office.

UAW President Shawn Fain said the legislation builds on and strengthens the existing connected-vehicle rule. General Motors said it supports policies that protect American manufacturing and strengthen the global competitiveness of U.S. automakers.

An identical bill, H.R. 8730, was introduced by Rep. John Moolenaar (R-Mich.) and Rep. Debbie Dingell (D-Mich.) to the House in May.

Polestar Says US Sales Will Stop Under Rule

Polestar is a Swedish electric-vehicle brand majority-owned by China’s Geely. The company has sold vehicles in the United States and has shifted some production outside China, including Polestar 3 production in South Carolina and planned Polestar 4 production in South Korea.

Polestar told The Epoch Times that its application for authorization under the existing connected-vehicle rule has not been approved.

“All of our future models, from Model Year 2027 onwards,” are affected by the rule, Theo Kjellberg, Polestar’s head of corporate communications, said in an email.

Asked whether S. 4429, if enacted, would affect Polestar’s U.S. sales, sourcing, software, hardware, or compliance plans beyond the existing BIS rule, Kjellberg said, “Yes, we will stop selling new cars in the US and greatly reduce our footprint there.”

Kjellberg said meeting the rule’s technical requirements “was never an issue” for Polestar, but because the company has not received an authorization, “we will not be selling new cars in the US.”

In a June 25 statement, Polestar said it is increasing its focus on Europe after BIS did not grant the company authorization under the current connected-vehicle rule to sell vehicles in the United States from model year 2027 onward.

The company said it will continue to sell existing stock of Polestar 3 and Polestar 4 vehicles in the United States and continue supporting customers through its service network.