The long-standing freeze on Chinese automakers selling cars in the US may finally be starting to thaw. China, the largest auto market in the world and the largest car exporter, has been kept away from US customers due to high tariffs and geopolitical tensions. However, many Chinese cars are now ready for the US market and are fully competitive with current offerings.
Geely, a Chinese automaker, is among those looking to sell their cars in the US. Geely’s Volvo Cars division already has an assembly plant in South Carolina, where it builds electric SUVs and other models. This plant could serve as a foothold for Geely’s future in the US.
One major challenge for Chinese automakers entering the US market is the requirement to certify that all software for autonomous driving, connectivity, and telematics has not been developed in or controlled by a “country of concern” such as China or Russia. This rule, initiated by the Biden administration and finalized by the Trump administration, aims to protect the US from potential national security risks associated with advanced auto technologies.
Geely will need to demonstrate that its software complies with these rules, which focus on preventing adversary governments from accessing vehicles for malicious purposes. While some experts question the efficiency of these measures, they emphasize the importance of safeguarding national security.
Volvo, despite being controlled by Geely, is seen as a European carmaker and a household name in the US. Sources suggest that Volvo may find a way to address the concerns of the Commerce Department and continue selling cars in the US.
The future of Chinese automakers in the US market remains uncertain, as compliance with the strict regulations is essential. Geely, with its potential to build cars in the US, has a significant advantage but must navigate the complex regulatory landscape. As discussions continue and regulations evolve, the fate of Chinese automakers in the US will depend on their ability to meet stringent security requirements and gain approval from the authorities.