Proposed Biden Chinese auto tech ban could cut US auto sales by up to 25,000

WASHINGTON (Reuters) – Proposed new rules to ban China-related vehicles and key Chinese software and vehicle hardware in American cars could reduce U.S. auto sales by up to 25,841 vehicles a year and raise prices, the Commerce Department said on Friday.

The department said U.S. automakers and other companies selling in the U.S. “may be less competitive in the global market due to the relatively high prices of their vehicles.” Stating that the regulation “may have visible effects on vehicle prices”, the organization estimated that between 1,680 and 25,841 fewer vehicles would be sold annually due to the rule.

The department also estimated that the rule could affect vehicle inputs from Chinese or Russian companies by $1.5 billion to $2.3 billion for vehicles sold in the United States.

(Reporting by David Shepardson)