Ensure that Chinese automakers cannot establish manufacturing operations in the United States or use North American production as a backdoor into the U.S. market;
I will ensure that Chinese automakers cannot establish manufacturing operations in the United States or use North American production as a backdoor into the U.S. market.
Occurrences
Evidence
BIS final rule says it prohibits transactions involving vehicle connectivity-system hardware and covered software designed, developed, manufactured, or supplied by persons tied to the PRC or Russia, effective March 17, 2025. It also prohibits PRC- or Russia-controlled connected vehicle manufacturers from knowingly selling completed connected vehicles in the United States that incorporate VCS hardware or covered software.
The rule exempts covered-software transactions for completed connected vehicles manufactured before model year 2027 and exempts VCS hardware associated with vehicle model years before 2030 or imported before January 1, 2029 in some circumstances.
The White House stated that the Section 301 tariff rate on electric vehicles from China would increase from 25% to 100% in 2024, and that the 100% rate would protect American manufacturers from China’s unfair trade practices.
USMCA Article 2.4 provides that, unless otherwise provided, no party shall increase an existing customs duty or adopt a new customs duty on an originating good, and each party shall apply customs duties on originating goods according to its tariff commitments.
USMCA vehicle rules define passenger vehicles and provide that a passenger vehicle of subheadings 8703.21 through 8703.90 can qualify with a change from another heading and regional value content of not less than 75 percent under the net cost method.
The draft bill would prohibit, beginning January 1, 2027, the importation, manufacture, sale, resale, or introduction into U.S. interstate commerce of a connected vehicle if its country of origin is a covered country including the People’s Republic of China, or if the manufacturer is more than 15 percent owned or controlled by covered-country entities.
The BYD Auto page describes BYD Auto as a Chinese automobile manufacturer and says BYD’s electric bus plant in Lancaster, California became operational in 2014, with BYD buses produced in the United States at the Lancaster plant.
Car and Driver reported that Volvo, majority-owned by China’s Geely Holding, received a specific authorization from the Commerce Department’s ICTS office for continued import and sale of connected cars in the United States under the connected-vehicles rule.
Autoweek reported that Volvo Cars is majority-owned by Zhejiang Geely Holding Group and operates an assembly plant in Charleston, South Carolina, where it says it has invested more than $1.3 billion and created more than 2,000 jobs.
Assessments
The promised categorical outcome was not delivered: Chinese-linked automakers are not barred across the board from U.S. manufacturing or North American production access, and examples such as Geely-owned Volvo's U.S. operations and specific authorization to continue connected-vehicle activity undercut full fulfillment. Federal actions during Lynch's current tenure, including the 100% tariff on Chinese EV imports and the Commerce connected-vehicle rule targeting PRC-linked software, hardware, and certain vehicle sales, materially restrict parts of the problem but are narrower than a ban on Chinese automakers establishing U.S. manufacturing or using USMCA/North American production as a backdoor. The stronger 2026 bill appears only to be draft legislation and not credited to Lynch as enacted work. No evidence shows Lynch personally sponsored or materially advanced a successful measure, so this warrants partial outcome credit, not full delivery or an effort badge.