Polestar Faces U.S. Market Challenge Amid Chinese Tech Ban Proposal

Swedish automaker Polestar warns that a proposed U.S. regulation banning Chinese vehicle hardware and software would effectively prevent them from selling vehicles in the United States. The rule aims to address national security concerns and could impact Polestar's South Carolina-built and China-produced vehicles.

Polestar, the Swedish automaker, has raised concerns over a proposed rule by the Biden administration that would ban the use of Chinese vehicle hardware and software. The automaker claims this would effectively block its ability to sell vehicles in the U.S.

In comments submitted to the Commerce Department, Polestar, majority-owned by China's Geely, stressed that the proposed regulation addressing national security fears could prevent the sale of its vehicles built in South Carolina and those manufactured in China.

This potential ban highlights the ongoing tensions between the U.S. and China regarding technology and trade, and it places Polestar in a challenging position as it seeks to expand its American market presence.

(With inputs from agencies.)