Polestar, a car brand developed by Volvo Cars and its owner Geely, announced that the Trump administration was forcing it to stop selling cars in the U.S. starting with the 2027 model year, as Washington ramps up its crackdown on Chinese EVs. A Chinese analyst said the move reflects the U.S.' overreach in using so-called national security concerns to disguise underlying weaknesses in its own EV sector. The expert warned that such measures could ultimately slow the development of the U.S. EV industry while limiting consumers' access to advanced, cost-competitive EVs, especially as oil prices rise amid geopolitical conflicts. The U.S. Commerce Department did not grant authorization to sell Polestar-branded cars under the Connected Vehicles Rule, which restricts the import and sale of cars with connected-vehicle technology from China. Bluetooth, wi-fi, cellular connectivity and some satellite communications technologies are covered under the rules adopted in January 2025. The U.S. administration alleges that those Chinese communications technologies could endanger national security.
The latest move is part of a continued tightening of U.S. regulatory barriers targeting the Chinese EV sector on the basis of national security. Such restrictions risk distorting normal market competition and further politicizing industrial and technological issues, Zhou Mi, Senior Researcher at the Chinese Academy of International Trade and Economic Cooperation, told the Global Times. He noted that China's EV industry has built strong global competitiveness through sustained technological innovation and domestic market competition, forming a complete industrial ecosystem that continues to drive down costs and improve performance. Many see only the price advantage of EVs, but more importantly, it reflects advances in technology and efficiency, as well as shifts in consumer attitudes, experts said.
Even though it is tough for American drivers to buy a Chinese EV, no matter where it is built, many claim to be EV-curious. According to a recent Kelley Blue Book study, 38% of Americans say they would consider buying a Chinese vehicle if they had the choice. “The only thing stopping them is the restrictions of selling into the U.S.,” said Dan Ives, Analyst at Wedbush Securities.
A Cox survey, which polled 802 U.S. consumers who expect to buy a car in the next two years, showed that 49% of respondents rated Chinese cars as having very good or excellent value, and 40% said that they support the idea of Chinese auto brands in the U.S. market. Zhou warned that excessive reliance on regulatory barriers could slow technological progress in the U.S. market and limit consumer access to high quality, reasonably priced EVs. Chinese new-energy vehicles are continuing to gain a stronger foothold in global markets, the Global Times reports.
