Beijing has urged the US to cease its ‘unjustified pressure’ on Chinese companies

China called on the United States on Wednesday to cease what it described as “unreasonable suppression” of its companies, following U.S. proposals aimed at banning Chinese software and hardware in vehicles over national security issues.

A spokesperson from the commerce ministry stated, “The U.S. initiative lacks factual support, contravenes the principles of market economy and fair competition, and exemplifies a protectionist stance.”

The U.S. Commerce Department announced on Monday its intention to implement this regulation, which was initially reported by Reuters. This regulation would require American and other major automakers to eliminate essential Chinese software and hardware from internet-connected and navigation-enabled vehicles in the U.S.

The spokesperson further noted that this action “significantly undermines normal cooperation between China and the United States in the realm of connected vehicles, disrupts the global automotive supply chain, and adversely affects the interests of consumers in the United States.”

The proposed action would essentially prohibit Chinese automobiles and trucks from entering the U.S. market, primarily due to significant worries regarding data gathering by connected Chinese vehicles concerning American drivers and infrastructure, as well as the risk of foreign interference in vehicle operations.

The ongoing conflict between China and the U.S. has been fueled by each nation’s national security apprehensions. The U.S. has already implemented substantial export restrictions on semiconductors, and this latest initiative represents a considerable intensification of U.S. limitations on Chinese vehicles, software, and components.

“The U.S. should promptly reverse its restrictive measures,” stated the spokesperson.