China’s auto industry association blasts US rule against Chinese technology of connected cars

People visit the 20th China (Changsha) International Automobile Exposition in Changsha, central China's Hunan Province, Dec. 4, 2024. (Photo/Xinhua)

The China Association of Automobile Manufacturers (CAAM) on Thursday voiced strong opposition to the Biden administration's final rule prohibiting the sale and import of connected vehicle hardware, software systems, and complete connected vehicles from China.

In recent years, China's intelligent connected new energy vehicles have steadily developed, earning widespread consumer favor due to their competitiveness. Additionally, the adoption of related software and hardware technologies has grown within the global automotive supply chain, positively contributing to the growth of intelligent connected vehicle markets and global industrial development, the CAAM said in a statement seen on its WeChat account.

The development of relevant sectors in China won't be affected by external disruptions, said the statement.

With China and the US both being major countries in promoting the development of intelligent connected vehicles, cooperation and exchanges are critical for mutually beneficial outcomes, it said.

The Biden administration's rules severely disrupt global automotive industry cooperation, undermine the shared development interests of multiple nations, violate international trade rules, jeopardize global industrial chain stability, and hinder efforts to create a safe, inclusive, and transparent global automotive ecosystem, the statement read.

The CAAM said the association strongly opposes the Biden administration's wrong-doing which harms the global intelligent connected automotive industry eco-system.

The Biden administration's unilateral restrictions that sever economic and industrial ties with selected countries not only disrupt fair competition in the global automotive market, but also inflict lasting harm on the global industrial chain. It will ultimately harm US businesses and consumers, the association said.

It called on the Biden administration to adopt an objective stance on economic and trade issues, and refrain from politicizing or over-stretching the concept of national security, and abolish relevant restrictions targeting China. The global automotive industry should enhance cooperation to collectively foster the healthy and sustainable development of the intelligent connected vehicle industry.

In a statement on Wednesday night, China's Ministry of Commerce expressed "strong dissatisfaction and firm opposition" to the Biden administration's intensive imposition of trade restrictions against China, including the restriction on Chinese vehicles.

"The Biden administration speaks one way and acts another. Sanctions, containment, and suppression cannot halt China's progress; instead, they bolster China's confidence and ability in self-reliance and technological innovation. China will take measures to resolutely safeguard its sovereignty, security, and development interests," the ministry spokesperson said.