A bipartisan bill introduced in the US Congress on 29 August 2026 would require the Commerce Department to conduct a sweeping study of national-security and economic risks stemming from Chinese involvement in the American automobile industry. The Automotive National and Economic Security Act of 2026 was jointly introduced by Republican Representative Diana Harshbarger of Tennessee and Democratic Representative Debbie Dingell of Michigan, signalling rare cross-party alignment on the China economic threat.

What the Bill Proposes

The legislation directs the Commerce Secretary to examine activities involving US automotive manufacturers and companies controlled by foreign adversaries — with China as the primary focus, according to the bill's sponsors. Although the measure applies broadly to all countries designated as foreign adversaries under US law, both lawmakers made clear during the announcement that China was the central concern.

The proposed study would cover a wide range of arrangements: foreign ownership, state-directed investment, joint ventures, subsidiaries, contract-manufacturing deals, commercial partnerships, technology-sharing agreements, research partnerships, and licensing arrangements. Manufacturers subject to the review would include any company in the United States that manufactures, assembles, or imports passenger vehicles, as well as businesses handling vehicle hardware and software.

National Security and Data Risks

Harshbarger argued that the growing reliance of modern vehicles on software and internet connectivity had transformed what was once a conventional trade dispute into a national-security and data-security challenge. 'China has a playbook, and we've watched them run it on critical minerals, shipbuilding, and batteries,' she said. 'Now they're setting their sights on the global automotive market, building out their industrial base with state subsidies and flooding markets with artificially cheap products to undercut American manufacturers.'

She added: 'As vehicles become more connected and software-driven, that strategy isn't just an economic threat, it's a national security threat and a risk to the data of every American behind the wheel.'

Commerce officials would be required to assess transfers of critical and emerging technologies, including artificial intelligence, semiconductors, advanced manufacturing, clean-energy storage systems, cybersecurity technology, autonomous-driving systems, robotics, communications technology, and electronic components used in electric-vehicle batteries.

Michigan's Stakes and Dingell's Push

Dingell, whose district in Michigan sits at the heart of America's traditional auto-manufacturing belt, framed the legislation as a defence of American workers. 'I'm a car girl — I will always fight for our auto workers and this critical industry that is the backbone of America's economy,' she said. 'And we must continue our efforts to decrease our reliance on China and create a level playing field,' she added. Michigan's auto industry has faced intensifying pressure from Chinese electric-vehicle makers whose state-subsidised pricing has alarmed domestic producers and unions alike.

Process, Timeline, and Oversight

The Commerce Secretary would consult relevant federal agencies throughout the study. Within two years of the legislation becoming law, findings must be submitted to the House Energy and Commerce Committee and the Senate Commerce, Science and Transportation Committee. An unclassified version of the report would be published on the Commerce Department's website, though confidential business information, trade secrets, and material whose disclosure could harm national security would be withheld.

The bill's introduction comes amid a broader US legislative push to scrutinise Chinese economic activity across strategic sectors — from semiconductors and shipbuilding to critical minerals. Whether the measure advances through a divided Congress remains to be seen, but its bipartisan backing gives it more traction than single-party efforts in recent sessions.