United States Set To Ban Chinese-Made Software From Entering Country

According to sources cited by Bloomberg and other media on Sunday, the US was considering new regulations that would prohibit Chinese-made software and hardware from being installed in American cars.

China urged “the US to respect market principles and provide an open, fair, transparent, and non-discriminatory business environment for Chinese enterprises,” foreign ministry spokesman Lin Jian said in response to questions over the claims.

According to Lin, “China opposes the US’s discriminatory actions against Chinese companies and products as well as the broadening of the concept of national security.” He went on, “China will steadfastly defend its legitimate rights and interests.”

If the regulations are approved, it will be the most recent development in the US and China’s brewing trade spat. Washington announced significant tariff increases on Chinese imports of semiconductors and electric vehicles in May.

According to the White House, the tariff hikes target crucial industries like electric vehicles (EVs), batteries, essential minerals, and medical supplies. They affect Chinese imports valued at $18 billion.

The tariff rate on semiconductors will increase from 25% to 50% by the next year, while the tariff rate on electric vehicles (EVs) is scheduled to treble to 100% this year.

These plans were completed this month in advance of the presidential election in November, in which Republicans and Democrats alike hope to demonstrate a firm posture against China as the rivalry between the two nations heats up.

Following a review of tariffs implemented by then-President Donald Trump, which affected over $300 billion worth of goods from China, the $18 billion worth of items were subject to tariff rises.

A 50% charge on semiconductors, a significant hike from previously, will begin in 2025, the US Trade Representative’s office announced, in addition to tariff rises that include those on solar cells.

Rather than fighting on trade, US President Joe Biden has blamed Beijing of “cheating.”