China has requested US on Wednesday to prevent 'unreasonable suppression' of its firms, responding to US proposals to ban Chinese hardware and software vehicles on roads, on the back of national security concerns, the newswire reported.
"The U.S. move has no factual basis, violates the principles of market economy and fair competition, and is a typical protectionist approach," said a spokesperson for the commerce ministry, Reuters noted.
The action "seriously affects the normal cooperation between China and the United States in the field of connected vehicles, disrupts the global automotive industry supply chain, and harms the interests of United States consumers," the spokesperson said, according to a statement.
The move would bar Chinese cars and trucks from the US market, with concerns centered on data collection by connected Chinese vehicles on US drivers and potential foreign manipulation of vehicles, Reuters stated.
China and the U.S. have tussled over respective national security concerns. The U.S. has enforced major export bans on semiconductors, and the latest proposal is a significant escalation in U.S. restrictions on Chinese vehicles, software and components, Reuters reported.