Mexico Raises Alarm on U.S. Technology Restrictions

The Mexican government has expressed concerns regarding the U.S. proposal to ban Chinese software and hardware in connected vehicles due to potential national security risks. Mexico warns that this move could significantly impact its automotive industry, leading to trade barriers and job losses.

The Mexican government has sounded alarms over the Biden administration's recent proposal aimed at barring Chinese software and hardware in American connected vehicles due to national security risks.

Mexico's economy ministry, in its filing with the U.S. Commerce Department, flagged the implications, citing potential trade obstructions, disruptions in supply chains, and increased production costs as significant concerns. It further warned of possible repercussions such as a decline in both direct and indirect employment linked to the automotive sector.

Concurrently, automaker and tech industry groups have appealed to the administration on Monday, seeking amendments and additional time before the implementation of such a rule.

(With inputs from agencies.)