H.R. 4736: No Chinese Cars Act

This bill, titled the No Chinese Cars Act, intends to modify existing trade regulations in the United States, specifically under the Trade Act of 1974. The key objectives and provisions of the bill are outlined below:

1. Introduction of the Bill

The bill is aimed at granting the U.S. Trade Representative greater authority to take action against certain foreign trade practices, specifically targeting motor vehicles produced in specific countries.

2. Amendments to Trade Representative's Authority

The bill proposes amendments to Title III of the Trade Act of 1974, particularly section 301, as follows:

• It provides the Trade Representative the ability to take actions, beyond current limitations, against motor cars and other vehicles primarily designed for the transportation of people if these vehicles are produced in:

  • A firm located in a country that is already facing tariffs or duties.
  • A firm based in specific nations deemed adversarial, including the People's Republic of China, the Russian Federation, the Islamic Republic of Iran, or the Democratic People's Republic of Korea.

3. Definition of Terms

The bill clarifies certain terms to ensure clear understanding and implementation:

• Motor cars and other motor vehicles are defined to include vehicles that:

  • Contain an internal combustion engine.
  • Utilize a hybrid engine combining an internal combustion engine and a battery-powered electric motor.
  • Operate solely on electricity from a portable source.

• The term a firm of the foreign country includes firms or subsidiaries that are either headquartered in or controlled by the specified foreign countries.

4. Consultation before Action

Before making changes to existing trade actions as outlined in this bill, the Trade Representative is required to:

• Consult with relevant parties, including the petitioner and representatives of the domestic industry.
• Offer an opportunity for affected individuals or organizations to present their views, potentially through public hearings.

5. Effective Date

The provisions of this act would take effect immediately upon its enactment and would apply to any actions taken by the President under section 301 of the Trade Act of 1974, regardless of when those actions occurred.

Relevant Companies

• NIO Inc. (NIO) - As a Chinese electric vehicle manufacturer, NIO could be directly impacted by restrictions on Chinese vehicles entering the U.S. market.
• XPeng Inc. (XPEV) - This company may face barriers or tariffs on its vehicles due to the act's stipulations regarding imports from China.
• Li Auto Inc. (LI) - Similar to the others, Li Auto, being a Chinese firm manufacturing electric vehicles, might see its products become less competitive in the U.S. market due to regulatory challenges.