Senate panel advances bill to block China-linked connected vehicles

The Senate Commerce Committee unanimously advanced the Connected Vehicle Security Act on July 22, moving a bipartisan effort to restrict China-, Russia-, Iran- and North Korea-linked connected vehicles and parts closer to passage. The United States Hispanic Business Council says the measure would protect U.S. economic and national security by limiting risky vehicle technology in American markets.

Why it matters: - The Connected Vehicle Security Act targets vehicle technology that could expose U.S. drivers, businesses and supply chains to foreign surveillance or security risks. - The bill would bar connected vehicles, software and hardware tied to China, Russia, Iran and North Korea from the U.S. market if enacted. - The measure could reshape how automakers, suppliers and importers source connected-vehicle technology.

What happened: - The Senate Committee on Commerce, Science and Transportation unanimously advanced the Connected Vehicle Security Act during a July 22 markup. - Senators Bernie Moreno of Ohio and Elissa Slotkin of Michigan led the bipartisan bill. - Javier Palomarez, president and CEO of the United States Hispanic Business Council, praised the committee vote and called the legislation a step toward passage. - The USHBC said it endorses the bill and is ready to work with lawmakers from both parties to move it forward.

The details: - The bill would prohibit the importation, integration, manufacture, sale or resale of connected vehicles, software and hardware linked to China, Russia, Iran and North Korea. - The legislation directs the Secretary of Commerce to identify and block high-risk vehicle technologies, components and transactions that threaten U.S. economic or national security. - The bill includes enforcement mechanisms and a phased implementation timeline. - The timeline sets 2027 for connected vehicle and software restrictions and 2030 for hardware restrictions. - The phased rollout would align with the Bureau of Industry and Security’s Connected Vehicle Rule. - Palomarez said Chinese connected vehicles function as a “21st-century Trojan horse” and argued that Chinese firms’ data collection practices pose espionage risks. - Palomarez also said Chinese subsidies undercut American businesses, including small firms in the auto supply chain, and can cost U.S. workers jobs.

Between the lines: - The bill reflects growing bipartisan concern in Washington that connected cars are no longer just consumer products; they are also data-collection platforms and potential security vulnerabilities. - The unanimous committee vote suggests China-linked vehicle security is becoming a rare area of agreement across party lines. - USHBC’s public backing signals that small-business advocates see the bill as both a national security issue and an economic protection measure.

What's next: - The legislation now needs further congressional action before it can become law. - USHBC said it will continue engaging lawmakers from both parties to push the bill toward passage. - The group also directed supporters to learn more and follow @myushbc and @JPalomarez on X.