Polestar Faces U.S. Market Hurdle Over Proposed Anti-China Vehicle Rule

Polestar warns a Biden administration proposal could bar its U.S. vehicle sales, impacting operations globally. The proposed rule aims to ban Chinese vehicle tech, raising concerns over national security and affecting companies like Polestar, partly owned by China's Geely. Ford and General Motors seek clarity on import regulations.

The Swedish automaker Polestar, known for its connection with China's Geely, has voiced concerns over a recent Biden administration proposal that could restrict its vehicle sales in the United States. The proposed rule aims to ban Chinese vehicle hardware and software due to national security risks.

In its comments to the Commerce Department, Polestar emphasized its widespread operations outside China, highlighting that a significant portion of its leadership is from Europe and the U.S. Despite a global workforce, only 10% of its employees are based in China. Polestar argues that the rule unfairly targets its operations, which are lawful and heavily invested in the U.S.

The Commerce Department has yet to respond, but earlier reports indicated an impact on four Chinese vehicle models sold in the U.S. Ford also seeks clarity on the proposed rule, indicating it might affect domestic automakers if their vehicles feature Chinese components and are assembled abroad.

(With inputs from agencies.)