Have you observed an intriguing global trend in recent years? Whenever American companies find themselves unable to compete with their Chinese counterparts in a specific product category, the U.S. often resorts to measures that restrict or prohibit Chinese products from entering its market.

Take the cases of 5G technology and smartphones, for instance. Facing stiff competition, the U.S. government has barred Huawei and ZTE from supplying 5G equipment and related products within the country. Additionally, it has imposed restrictions on numerous Chinese smartphones, limiting their access to the U.S. market.

Recent media reports have disclosed that, unable to match the prowess of Chinese automakers in the smart car sector, the Alliance for Automotive Innovation (AAI), which represents the mainstream forces of the North American automotive industry, has sent an open letter to both chambers of the U.S. Congress. The letter urges a permanent ban on Chinese cars entering the U.S. market.

Behind the AAI, there are currently at least 25 companies, including major automakers such as BBA (BMW, Benz, Audi), General Motors, Ford, Toyota, Volvo, and Volkswagen. The notable exception is Tesla, which has chosen not to participate.

Furthermore, around 14 automotive-related suppliers, technology firms, and parts companies are also involved, bringing the total number of collaborating companies to nearly 40.

What’s driving this move? The rationale is straightforward: these traditional, gasoline-powered automakers are genuinely struggling to compete with Chinese automakers in the electric vehicle (EV) arena and have resorted to such tactics as a last resort.

They argue that Chinese electric vehicles benefit from significant subsidies, leading to unfair trade practices. They also raise concerns about potential data security risks associated with these connected Chinese vehicles.

In reality, they are fully aware that, due to the 100% high tariffs imposed by the U.S., there are currently no Chinese electric vehicles in the U.S. market. The market share of Chinese new energy vehicles in the U.S. is virtually non-existent, apart from a handful of vehicles purchased by U.S. automakers for research purposes. Normal trade vehicles are practically absent.

So, why are they still pressing the U.S. government to permanently ban Chinese electric vehicles from entering the U.S. market? They aim to set a precedent, using it as leverage to encourage Europe, Japan, and other countries and regions to adopt similar policies.

They recognize that if they don’t act swiftly, Chinese electric vehicles will gain global momentum, leaving them with little chance of competing against Chinese automakers on the world stage.

Now, the question remains: how will the U.S. government respond? Some analysts speculate that the U.S. may choose to overlook this letter, given that the existing 100% tariffs have already effectively blocked Chinese electric vehicles from the market, rendering further action redundant.