Concerns from Mexico about the U.S. Plan to Ban Chinese Technology in Vehicles

The Mexican government expressed concerns on Monday regarding the Biden administration's proposal to ban Chinese software and hardware in connected vehicles in the U.S. for national security reasons. The Mexican Ministry of Economy submitted a request to the U.S. Department of Commerce highlighting the potential negative impacts this ban could have on the Mexican automotive industry.

According to the request, the proposed ban could lead to significant economic consequences, including potential trade barriers, disruptions in supply chains, increased production costs, and a risk of job reductions both directly and indirectly within the automotive sector.

On the same day, automotive manufacturers and technology groups reached out to the administration, requesting amendments to the proposed regulation and an extension of the timeline before the rule is implemented. They are seeking more time to comply with the proposed changes and address the potential impacts on their operations.