Dear Focus Reader,

This week, the Biden administration proposed prohibiting key Chinese software and hardware in connected vehicles on American roads, citing national security concerns. The move follows heightened scrutiny over China's role in critical industries, including automotive technology, and the potential risks to U.S. infrastructure and data privacy, and further demonstrates how securitization is now a defining factor in U.S.-China trade relations.

The Commerce Department's proposal would effectively ban Chinese cars and trucks from the U.S. market and require automakers to remove Chinese-made software and hardware from vehicles by the 2027 and 2030 model years. The administration also locked in steep tariff hikes on Chinese imports, including a 100% duty on electric vehicles and hikes on EV batteries and key minerals.

Supporting the proposal, Commerce Secretary Gina Raimondo warned that technologies like GPS and cameras in modern vehicles could be exploited by foreign adversaries for surveillance or even sabotage.

In response, China's Foreign Ministry condemned the move as discriminatory and urged the U.S. to provide Chinese companies with "an open, fair, transparent, and non-discriminatory business environment," vowing to safeguard China's "legitimate rights and interests."

The ban coincides with broader U.S. efforts to curb Chinese dominance in critical sectors, including through the Minerals Security Partnership. The partnership, a coalition of 14 nations and the European Commission, recently introduced a financing network designed to support projects that provide essential raw materials for the tech industry, ranging from electric vehicles to advanced defense systems, ultimately reducing dependence on China. They're set to unveil this new financing initiative on Monday, aiming to increase international collaboration and pledge financial support for large projects.Learn more on China-U.S. relations by catching up on our latest Focus content, including topics on AI, security, and more.