USHBC backs Senate bill targeting connected vehicles tied to China and other adversaries

The United States Hispanic Business Council is backing a Senate bill that would bar certain connected vehicles, software and hardware linked to China, Russia, Iran and North Korea from U.S. markets. The measure advanced unanimously in committee on July 22 and could reshape vehicle supply chains, security rules and enforcement for the auto industry.

Why it matters: - The Connected Vehicle Security Act would expand federal efforts to block foreign-linked vehicle technology that lawmakers view as a risk to U.S. economic and national security. - The bill could affect automakers, suppliers and small businesses in the auto supply chain if it becomes law. - The measure also reflects growing bipartisan concern about data collection and vehicle cybersecurity in connected cars.

What happened: - The Senate Committee on Commerce, Science, and Transportation advanced the Connected Vehicle Security Act on July 22 with unanimous bipartisan support. - Senators Bernie Moreno of Ohio and Elissa Slotkin of Michigan led the bill. - The United States Hispanic Business Council said Javier Palomarez, its president and CEO, commended the committee for moving the bill forward. - The USHBC said it is an endorser of the legislation and plans to engage lawmakers from both parties to help pass it.

The details: - If enacted, 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 would direct 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 timeline. - The timeline would run through 2027 for connected vehicle and software restrictions and through 2030 for hardware restrictions. - The schedule is designed to align with the Bureau of Industry and Security’s Connected Vehicle Rule. - Palomarez said Chinese connected vehicles are a "21st-century Trojan horse" and warned that Chinese firms can collect large amounts of data and may be required to share that data with the Chinese Communist Party. - Palomarez also argued that Chinese subsidized products have hurt American businesses, including small businesses in the auto supply chain.

Between the lines: - The bill combines national security policy with industrial policy by targeting both foreign technology exposure and market access. - Bipartisan support in committee suggests the proposal may have broader political momentum than many trade-related restrictions. - The USHBC’s backing shows that some business groups see the bill as a protection for U.S. manufacturers and suppliers, not just a security measure.

What's next: - The bill now moves forward in the Senate process after committee approval. - The USHBC said it will continue pushing Congress to pass the measure. - If lawmakers approve the legislation, Commerce would begin the identification and blocking process for covered technologies and transactions. - The phased deadlines would give industry time to adjust before the hardware rules take full effect in 2030.

The bottom line: - The Senate bill is a major step toward tighter U.S. limits on connected vehicle technology tied to geopolitical adversaries.