U.S. senators are seeking to fast-track bipartisan legislation that would make the existing restrictions on Chinese vehicles permanent, putting the issue at the center of Washington’s economic and national-security debate as President Donald Trump prepares to meet Chinese President Xi Jinping this week.
The effort is being led by Democratic Senator Elissa Slotkin of Michigan and Republican Senator Bernie Moreno of Ohio, whose Connected Vehicle Security Act of 2026 would prohibit Chinese-origin vehicles and key connected-vehicle technologies from entering the U.S. market. The bill has already passed the Senate Commerce Committee unanimously, and supporters are now seeking approval by the full Senate.
Slotkin and Moreno are aiming for unanimous Senate approval this week. A notice circulated to Democratic senators said Moreno intended to seek unanimous consent, although congressional aides said some Republican senators had raised concerns and it remained unclear whether any would object. Reuters reported that the legislation has 51 Senate supporters, while its House counterpart has more than 100 cosponsors.
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The timing adds significance to the legislation. Trump is expected to meet Xi in Washington this week for talks covering a broad range of trade and economic issues. China has opposed the U.S. restrictions on its automotive industry, while Trump has recently indicated that he could accept Chinese automakers building vehicles inside the United States.
Earlier this month, Trump told Fox News that he would be comfortable with Chinese companies establishing U.S. factories to build cars. That position has unsettled parts of the American auto industry because the proposed congressional legislation would close not only the import channel but also potential routes into the U.S. market through local manufacturing.
Slotkin has argued that allowing Chinese automakers to establish production in the United States would threaten the existing domestic auto industry.
“Whether you are a Democrat or Republican, no one wants Chinese cars in America,” she said at a Capitol Hill press conference on Wednesday.
The dispute highlights an important question in the U.S.-China auto relationship: should Washington’s restrictions apply only to vehicles imported from China or also to Chinese companies that manufacture vehicles inside the United States?
The question is becoming more relevant as Chinese automakers expand internationally. Chinese manufacturers have rapidly increased their global market share, while companies such as BYD have developed large-scale EV manufacturing and battery supply chains. Allowing those companies to manufacture inside the United States could potentially circumvent some of the restrictions imposed on direct imports, depending on the ownership, technology, and component rules applied.
The proposed bill seeks to close that possibility.
Its supporters say the legislation would restrict Chinese-origin vehicles, software and critical hardware across the production, importation and sales chain. The measure is also aimed at connected-vehicle technology because modern cars function as mobile computing platforms capable of collecting location, communications and other information.
That is central to the national-security argument behind the restrictions.
The Biden administration introduced rules in early 2025 that effectively barred Chinese automakers from selling or building passenger vehicles in the United States under rules targeting connected-vehicle technology and potential access to sensitive data. Washington has also maintained tariffs exceeding 100% on Chinese electric vehicles.
The concern extends beyond the vehicle itself. Bluetooth, Wi-Fi, cellular connectivity, and certain satellite communications technologies can allow connected vehicles to gather and transmit data. U.S. policymakers have argued that Chinese-linked technology could create security risks if information collected from American roads, drivers, or sensitive locations were accessible to Chinese entities.
The proposed legislation would therefore turn what has largely been an executive-branch regulatory policy into a statutory restriction, making it harder for a future administration to issue waivers or reverse the policy.
The auto industry’s position has added momentum to the effort.
Six major automotive trade groups representing companies including General Motors, Ford, Toyota, Volkswagen, Hyundai, Stellantis and Tesla recently urged Trump to keep Chinese automakers out of the U.S. market. The groups said the government should maintain restrictions on Chinese companies seeking to sell, import, or manufacture vehicles in the United States.
Their argument combines national security with industrial policy. The groups contend that Chinese investment could shift production and employment away from established manufacturers that have invested heavily in American factories and supply chains.
The position also reflects concern about the competitive economics of China’s auto industry. Chinese manufacturers have developed significant scale in electric vehicles, batteries, and components, allowing them to compete aggressively on price in markets outside the United States.
For American automakers, the potential arrival of Chinese competitors would not simply mean another group of vehicle brands entering the market. It could introduce companies with highly developed battery supply chains and manufacturing ecosystems into an industry already undergoing a costly transition from internal-combustion vehicles to electric and software-defined vehicles.
There is, however, a separate economic argument surrounding the restrictions. Supporters of Chinese vehicle access say greater competition could increase consumer choice and put downward pressure on vehicle prices. U.S. vehicles remain expensive, and restricting lower-cost Chinese manufacturers removes a potential source of competition.
The policy consequently sits at the intersection of three competing objectives: protecting national security, maintaining U.S. industrial capacity, and preserving competition and affordability for consumers.
The political divide over how to balance those objectives is not neatly aligned with party lines. The Slotkin-Moreno legislation itself is bipartisan, and its committee passage was unanimous. At the same time, Trump’s openness to Chinese companies manufacturing in the United States introduces a different policy option: allowing investment and domestic production while imposing conditions on ownership, technology, data handling, and supply chains.
That approach could potentially distinguish between where a vehicle is manufactured and who controls the underlying technology and data. The proposed legislation takes a substantially more restrictive approach by targeting Chinese-origin vehicles and connected technologies more broadly.
The outcome could have implications beyond the automotive industry.
China dominates important parts of the global battery and electric-vehicle supply chain, while Chinese companies are also major players in battery materials, components, and related technologies. Analysts say a permanent U.S. prohibition could encourage American manufacturers to deepen sourcing from domestic and allied suppliers, but it could also increase the cost of building competitive EV supply chains.
For China, the restrictions represent another barrier to entering the world’s second-largest vehicle market by sales. Chinese automakers have already expanded aggressively across Europe, Southeast Asia, Latin America and other emerging markets, but the U.S. remains effectively closed to Chinese-branded passenger vehicles.
The legislation would make that exclusion considerably harder to reverse.
The immediate political test is whether Moreno can secure unanimous consent in the Senate this week. If senators object, the legislation would have to proceed through the chamber’s normal legislative process rather than passing immediately.