S. 4710: Protecting America from Chinese Cars Act of 2026

This bill, titled the Protecting America from Chinese Cars Act of 2026, proposes to restrict the entry of connected vehicles into the United States from certain specified foreign countries, referred to as "covered countries." A connected vehicle is defined as one that communicates via various wireless technologies and is primarily intended for use on public roads.

Key Provisions

• Prohibition on Entry: The bill prohibits any connected vehicle from entering the U.S. if:
  • The vehicle is manufactured in or designed within a covered country.
  • The manufacturer is a joint venture or entity where more than 15% of ownership or control is held by an entity from a covered country.
• Exceptions: The ban does not apply to vehicles that are:
  • Not intended for public road use.
  • Being tested by a U.S.-organized entity that has less than 25% foreign ownership from a covered country.
• Authorizations: The Commissioner of U.S. Customs and Border Protection, in consultation with the Secretary of Commerce, may issue specific permits for vehicles that would typically be banned if thorough risk assessments determine they do not pose security risks and Congress is informed of this authorization.
• List of Authorized Vehicles: A list of connected vehicles that receive authorization will be published, including details about the manufacturer and reasons for the lack of risk.
• Regulatory Actions: The Commissioner must create regulations to enforce the bill within 90 days of its enactment, including a list of banned vehicles and a public information plan.
• Effective Date: The prohibition will take effect 30 days after the regulations are published.
• Definitions: The bill defines key terms, including "connected vehicle" and "covered country," the latter of which includes North Korea, China, Russia, and Iran.

Covered Countries

The "covered countries" under this bill are:

• North Korea
• China
• Russia
• Iran

Risk Assessment Requirements

For a connected vehicle to be authorized for entry despite the prohibition, the Secretary must establish that it does not pose:

• An undue risk of data breaches or unauthorized operation.
• A threat to critical infrastructure.
• A general risk to U.S. national security.

Implementation Timeline

• The bill will take effect 30 days after the regulations are established.
• The initial list of vehicles subject to prohibition must be published by January 1, 2027.

Relevant Companies

• BABA (Alibaba Group) - This company may face challenges due to potential restrictions on its automotive division products, particularly with regards to connected vehicle technology.
• TSLA (Tesla Inc.) - If any of Tesla's vehicle technologies are developed under partnerships that include entities from covered countries, this may impact their ability to operate in the U.S. market.
• F (Ford Motor Company) - If Ford has supply chain dependencies on manufacturers in the covered countries, it could face operational adjustments.