Chinese Cars Banned from US, Flooding Indonesia

KatadataOTO – As Joe Biden's administration nears its end, rules banning Chinese cars from entering the United States market have been finalized. In general, the policy could make vehicles made in China no longer sellable there.

One main focus of the rule is its ban on components that connect the vehicle to the outside world, such as Bluetooth, Wi-Fi, and satellite connections.

This regulation will also impact companies that utilize technology from China. Chinese brands will also no longer be able to conduct self-driving car tests in the US.

Other technologies are not left out, including security cameras, sensors, and computer systems in vehicles. Because they are considered exploitable by third parties and can collect sensitive owner data.

Photo : Carnewschina

“It’s easy to imagine how foreign parties who can access this information could endanger the security and privacy of US citizens,” said Gina Raimondo, US Secretary of Commerce, as quoted by The Verge, Tuesday (21/1).

Besides China, Gina mentioned the ban applies to technology produced in Russia. The software policy will be effective for vehicles produced in 2027, while the hardware ban from China will start in 2030.

But interestingly, there are some changes to the rule, as it excludes vehicles weighing over 10,000 pounds (4,535.9 kilograms). So, some companies like BYD can continue to produce electric buses there.

The Fate of Chinese Cars in Indonesia

In Indonesia, Chinese cars are actually thriving and receiving incentives from the government. As a result, several brands have committed to investments, such as BYD (Build Your Dreams) and Chery.

Photo : KatadataOTO

Many Chinese cars in the country are EVs (Electric Vehicles) or pure electric cars. Besides being rich in technology, their products are offered at competitive prices and are often cheaper than other models in the same segment. 

If last year there were BYD and Zeekr, throughout 2025 it is certain that many Chinese car brands will bring their products. To name a few: Geely, Leapmotor, Jaecoo, Denza, and Xpeng.

The options are also becoming more diverse. Because they are not only offering affordable products, some are starting to boldly bring in premium models priced at Rp 1 billion and above, such as the Zeekr X and Zeekr 009.