Washington, Aug 2026 : Two US lawmakers have introduced bipartisan legislation seeking a comprehensive review of the national-security and economic risks linked to Chinese involvement in the American automobile industry.
The Automotive National and Economic Security Act of 2026, introduced by Republican Representative Diana Harshbarger of Tennessee and Democratic Representative Debbie Dingell of Michigan, would require the US Commerce Department to investigate activities involving American automobile manufacturers and companies controlled by foreign adversaries.
While the proposed legislation applies broadly to countries designated as foreign adversaries under US law, its sponsors have placed particular emphasis on China, citing concerns over state subsidies, technology transfers, supply-chain dependence and the growing digitalisation of modern vehicles.
“China has a playbook, and we’ve watched them run it on critical minerals, shipbuilding, and batteries,” Harshbarger said, arguing that Beijing is now expanding its strategy into the global automotive sector.
She alleged that Chinese companies are using government support and low-cost products to strengthen their industrial position and challenge American manufacturers. According to Harshbarger, the increasing use of software, artificial intelligence and internet connectivity in vehicles has also transformed the issue from a conventional trade dispute into a broader national-security and data-security concern.
The proposed legislation would direct the Commerce secretary to conduct a detailed assessment of foreign ownership and state-backed investment in US automobile manufacturers. The review would also examine joint ventures, subsidiaries, contract-manufacturing agreements and commercial partnerships between American companies and businesses controlled by foreign adversaries.
A key component of the study would be an assessment of technology transfers involving strategically important sectors. These would include artificial intelligence, semiconductors, advanced manufacturing, clean-energy storage, cybersecurity, autonomous-driving technology, robotics and communications systems.
The review would also cover electronic components and technologies associated with electric-vehicle batteries, reflecting growing concerns in Washington over dependence on China for critical automotive and clean-energy supply chains.
The Commerce Department would be required to determine whether such business relationships could negatively affect US national security, economic competitiveness or the protection of American intellectual property.
The legislation would further examine the role of foreign military organisations, political parties, state-owned enterprises, sovereign wealth funds and other government-controlled investment entities in the American automotive sector.
Covered activities would include both direct and indirect ownership of manufacturers, technology-sharing agreements, research partnerships, licensing arrangements and investments in companies controlled by foreign adversaries.
The bill would apply to US-based businesses involved in manufacturing, assembling or importing passenger vehicles, as well as companies handling automotive hardware and software.
Dingell, a Michigan Democrat and longtime advocate for the US auto industry, said the legislation was aimed at protecting American workers while reducing the country's dependence on China.
“I’m a car girl—I will always fight for our auto workers and this critical industry that is the backbone of America’s economy,” Dingell said.
She stressed the importance of reducing reliance on China and ensuring fair competition for American manufacturers and workers.
Under the proposed legislation, the Commerce secretary would consult with other relevant federal agencies while carrying out the review. The department would have two years from the date the legislation becomes law to submit its findings to the House Energy and Commerce Committee and the Senate Commerce, Science and Transportation Committee.
The department would also be required to publish an unclassified version of its findings on its official website. However, confidential business information, trade secrets and sensitive material whose disclosure could pose risks to US national security would be excluded from the public version.
The bipartisan initiative comes as the United States continues to scrutinise China's expanding influence over critical technologies, minerals, batteries and advanced manufacturing. The lawmakers' focus on the automotive industry reflects growing concerns that connected vehicles could create new vulnerabilities involving data, software, technology and supply chains.
If enacted, the legislation would provide federal authorities with a broader framework to assess foreign involvement in one of the most strategically important sectors of the US economy.
(Disclaimer :The content of this article is sourced from a news agency and has not been edited by the Mavericknews30 team.)
