BEIJING (Sept 25): China urged the US on Wednesday to stop "unreasonable suppression" of its companies, in response to US proposals to ban Chinese software and hardware in vehicles on its roads due to national security concerns.

"The US 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.

The US Commerce Department on Monday proposed the planned regulation, first reported by Reuters, which would also force American and other major automakers in the future to remove key Chinese software and hardware from vehicles in the US connected to the internet and navigation systems.

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 effectively bar Chinese cars and trucks from the US market, with major concerns centred around data collection by connected Chinese vehicles on US drivers and infrastructure and potential foreign manipulation of vehicles.

China and the US have tussled over respective national security concerns. The US has enforced major export bans on semiconductors, and the latest proposal is a significant escalation in US restrictions on Chinese vehicles, software and components.

"The US should immediately revoke its restrictive moves," the spokesperson said.

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