"The Most Powerful Weapon to Counter China's Electric Vehicle Offensive"
Following the United States, Canada is also considering a ban on the use of Chinese-made software (SW) in connected cars, Bloomberg reported on the 24th (local time).
Chrystia Freeland, Canada's Minister of Finance, stated that day, "The government takes China's deliberate overproduction and security threats very seriously," adding, "We are reviewing whether to impose additional measures."
The day before, the U.S. Department of Commerce announced it would ban the sale of cars using Chinese or Russian software for autonomous driving or communication capabilities starting in 2027. When asked about the possibility of applying similar measures, Minister Freeland responded, "Absolutely."
Canada is currently in the stage of reviewing regulatory measures considering the security and privacy aspects of electric vehicle software. According to sources, it has not yet been decided through which legislation these regulations will be implemented.
Previously, Canada, along with the United States and the European Union (EU), announced plans to impose tariffs of up to 100% on Chinese-made electric vehicles, steel, and aluminum. However, China declared earlier this month that it would file a complaint with the World Trade Organization (WTO). In a situation where imposing tariffs may become impossible, Canada is considering establishing stronger barriers.
According to a Canadian government official who requested anonymity, banning Chinese-made automotive software is likely to be a permanent measure to block Chinese electric vehicles from entering the Canadian market. Currently, aside from Tesla vehicles manufactured at the Shanghai factory in China, there are no Chinese-made electric vehicles in Canada. BYD, China's largest electric vehicle manufacturer, is in the process of considering entry into the Canadian market.
Major foreign media outlets evaluate that the ban on Chinese automotive software will be the strongest weapon to block the offensive of low-cost Chinese electric vehicles that have shaken the global automotive industry. Unlike tariffs or subsidy policies applied only to vehicles produced in China, the software ban will also apply to Chinese manufacturers' vehicles produced in countries outside China, such as Mexico. It can also effectively establish trade barriers protecting Western manufacturers like Tesla.
Bloomberg predicted that the ban on Chinese automotive software would receive broad political and industrial support within Canada. Recently, Doug Ford, Premier of Ontario, Canada's "automotive hub," urged the United States to ban Chinese software in alignment with its policies. Flavio Volpe, President of the Canadian Automotive Parts Manufacturers' Association, urged Parliament to ensure there are no gaps between U.S. and Canadian measures regarding Chinese-made vehicles.
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