Mexico's Economic Alarm Over U.S. Tech Ban in Vehicles

Mexico has voiced concerns about a U.S. proposal to ban specific Chinese software and hardware in vehicles due to national security issues, which could affect Mexico's automotive sector. Automakers and technology groups have requested modifications to the proposal, citing trade disruptions and increased costs.

The Mexican government has raised significant concerns regarding the Biden administration's proposal to ban key Chinese software and hardware in connected vehicles across American roads. Mexico's economy ministry highlighted that this move could severely affect its automotive industry, potentially posing trade barriers, disrupting supply chains, and escalating production costs.

Automakers and tech associations have called on the U.S. administration for alterations and more time before the policy becomes effective. This proposal signifies an escalation in U.S. restrictions on Chinese automotive products, potentially banning imports of Chinese brand vehicles even if assembled in Mexico.

In response, the Alliance for Automotive Innovation and other tech groups requested extensions to adjust to the hardware requirement, urging for deadlines to be pushed back to allow crucial testing and updates. The Commerce Department aims to finalize the proposal by January 20, although it has not yet commented publicly.

(With inputs from agencies.)