The United States unprovokedly imposed restrictions on China, essentially choking their own people. According to a report by Reuters on the 15th, affected by the U.S. government's ban on connected cars, which is claimed to be due to "national security issues," American car manufacturers like Ford, which have deep integration with China's supply chain, are urgently seeking special government authorization to maintain the ability to sell Chinese-made vehicles in the United States.
The related ban originated from the so-called final restrictions on connected vehicles issued by the Biden administration last year. Under the pretext of "national security," the US announced restrictions on the use of Chinese connected vehicle software and hardware, as well as complete vehicles, in the United States.
According to the rules, software control for vehicle-mounted devices will come into effect from model year 2027, and hardware control will be implemented from model year 2030. Additionally, the new regulations require that all enterprises controlled or governed by China and Russia must not sell connected vehicles in the United States. This provision also takes effect from model year 2027. The current Trump administration has continued to implement these regulations.
According to reports, the software for Ford’s Navara model is developed in the United States. However, the entire vehicle assembly and software installation are completed in China. To continue selling the vehicle in the US market, approval from government authorities is required. Ford confirmed to Reuters that the company has submitted an application to the US Department of Commerce, hoping to be allowed to continue importing the Lincoln Navara SUV produced in China.
June 3, 2026, Shenzhen, Guangdong Province. Ford booth at the 2026 Guangdong-Hong Kong-Macao Greater Bay Area Automobile Exhibition. The picture shows the Ford booth. Visual China.
This model is one of the few Chinese imported cars that were sold in the United States even before the implementation of U.S. restrictions. Ford states that it is very likely that the company will begin importing the Explorer 2027 model year next January, and there are still several months left to complete the authorization process.
Reuters pointed out that Ford is one of many automakers forced to cope with a cumbersome approval process and an opaque review mechanism. This process has also exposed the degree to which the US automotive industry's supply chain is deeply tied to China. It is widely believed that compared to control over in-car software, decoupling the automotive hardware supply chain is more difficult and requires a longer adjustment period. Additionally, since both software and hardware are often developed jointly by cross-regional teams worldwide, it is difficult for component suppliers to completely eliminate technologies or code originating from China.
A researcher from consulting firm Rongding Group said in a research report: 'Hardware limitations may become more complicated, and car manufacturers will need more time to adapt.'
According to Reuters, it is currently impossible to determine how many car companies have submitted such exemption applications, and the U.S. Department of Commerce has not commented on this matter.
According to Bloomberg's earlier report, at the beginning of this month, Volvo Car Group, a Swedish automobile brand owned by Chinese automaker Geely, announced that it had obtained an exemption from the Trump administration, allowing it to continue importing and selling Chinese-made connected vehicles in the United States. However, all models sold in the US must still comply with all relevant regulations.
Other car companies that may need special permits include Geely and Volvo together to create the high-end electric vehicle brand Polestar, as well as General Motors in the United States. The Buick Encore model of General Motors is produced in China.
Earlier this year, General Motors announced that it would move the production of this model to its plant in Kansas, USA, starting from 2028. It also confirmed that it has asked suppliers to eliminate all Chinese-made components from the supply chain by 2027.
Both companies have refused to disclose whether they have submitted authorization applications. Polar said it is in contact with the U.S. government to ensure that their products meet the new regulations.
According to Bloomberg, Volvo’s exemption also sets an important precedent for its parent company Geely in seeking similar treatment in the future. It also shows other Chinese automakers new ways of circumventing the obstacles set by American legislators.
Stephen Dyer, head of automotive and industrial product consulting at Arrow Electronics Asia-Pacific, partner, and managing director, believes that the Volvo case also serves as a reference for other Chinese automakers. Companies can meet the so-called national security requirements proposed by U.S. regulatory authorities by establishing entities that are independent from their Chinese parent companies, or by undergoing technical reviews.
The Trump administration has not publicly explained the specific reasons for granting exemptions to Volvo. However, reports indicate that the company’s plant in South Carolina has invested a total of $1.3 billion, creating about 2,000 jobs. These are real factors that cannot be ignored. Trump previously stated that he welcomes Chinese companies to build factories in the United States and hire American workers.
Regarding the United States' actions to suppress Chinese cars, the Chinese Ministry of Foreign Affairs previously stated that the US's attempt to politicize economic and trade issues will only hinder the development of the US automotive industry. We urge the US to respect the laws of a market economy and the principle of fair competition, stop generalizing concepts of national security, cease discriminating against and suppressing Chinese enterprises, and truly maintain an open, fair, and non-discriminatory business environment.
