Chinese Foreign Ministry spokesperson Lin Jian on Monday criticized a reported plan of the U.S. to ban Chinese-made software and hardware in connected and autonomous vehicles in the U.S., saying China will firmly defend its lawful rights and interests.

The U.S. Department of Commerce is expected to propose the ban due to national security concerns, Reuters reported. The proposal would make software prohibitions effective in the 2027 model year. The hardware ban would take effect in the 2030 model year or January 2029.

"China opposes the U.S. overstretching the concept of national security and taking discriminatory measures against relevant Chinese companies and products. We urge the U.S. to respect the principles of market economy and provide an open, fair, transparent and non-discriminatory business environment for Chinese companies. China will firmly defend its lawful rights and interests," said Lin.

The U.S. Commerce Department is giving the public 30 days to comment on the proposal and hopes to finalize it by January 20. The rules would cover all on-road vehicles but exclude agricultural or mining vehicles not used on public roads, as well as drones and trains.

Relevant data indicates that while China holds the top positions in both the global automobile market and exports, its share of automobile exports to the U.S. remains relatively small.

According to China Passenger Car Association (CPCA), China exported a total of 74,800 passenger cars to the U.S. in 2023, representing only 1.4 percent of its overall exports. Out of this figure, 18,600 were new energy passenger cars, accounting for a mere 0.4 percent of the total.

There are relatively few Chinese-made light-duty vehicles exported to the U.S., according to Reuters. In terms of software, including autonomous driving technology, some Chinese companies have been allowed to conduct tests in the U.S. However, there are no public reports of major sales to the U.S.

Chinese-made cars were popular globally not by using so-called "unfair practices," but by emerging from the fierce market competition with technological innovation and superb quality, another Chinese Foreign Ministry spokesperson Mao Ning stressed in March.

"China's door has been open to global auto companies, including U.S. auto companies which have fully shared the dividends of China's big market. By contrast, the U.S. has engaged in trade protectionism and set up obstacles including discriminatory subsidy policies to obstruct access to the U.S. market by Chinese-made cars," said Mao.

"Such acts of politicizing economic and trade issues will only hinder the development of the U.S. auto industry itself. China urges the U.S. to respect the laws of market economy and the principles of fair competition, stop overstretching the concept of national security, stop its discriminatory suppression against Chinese companies, and uphold an open, fair and non-discriminatory business environment," Mao added.