Polestar says Biden’s Chinese tech ban will succeed

The Biden administration’s plan to ban Chinese technology is intended to protect U.S. security, but it could end up putting domestic jobs at risk. Polestar said the proposal could “effectively ban” its cars from being sold in the United States, including models built in the United States by American workers.

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Lawmakers in Washington are concerned that smart cars containing Chinese hardware and software pose a security threat to the United States and must be kept out. But comments made by Geely’s Polestar to the U.S. Department of Commerce were revealed Reuters It’s a reminder that Chinese cars, which we often think of as a looming force, are already being sold in the U.S. and, in some cases, even part of the fabric of the U.S. economy.

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Polestar claims that only 280 of its 2,800 employees work in China, and 70% of its directors are from the United States or Europe. The company not only makes cars in China, but also in South Korea, and has just started production of 3 SUVs in South Carolina. One hundred Americans provided jobs. Also at risk from the proposals is sister brand Volvo, which shares the Ridgeville SC plant with Polestar and uses the same parts as Polestar to build its cars.

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Cars assembled in South Carolina are exempt from the hefty tariffs recently imposed on cars imported from China, but in theory may not be sold in the U.S. unless certain exemptions are made.

Polestar said the U.S. Commerce Department “should consider whether a rule that effectively shuts down the operations of a legitimately organized U.S. company that has significant investments in the U.S. and has so many personnel and key decision-making units in friendly countries and in the U.S. is appropriate to address this issue.” national security concerns stated in a question.” Reuters Report.

Ford, whose Lincoln Nautilus also violates the rule (as does General Motors Co.’s Buick Envision), urged the Commerce Department to ensure that cars are banned from sale based solely on their hardware and software, not where they are assembled.

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