WASHINGTON (Reuters)

The Mexican government has raised concerns regarding the Biden administration's proposal to ban key Chinese software and hardware in connected vehicles due to national security issues.

Mexico's Economy Ministry noted in a filing with the U.S. Commerce Department that the proposal could significantly impact Mexico’s automotive industry. It raises worries about potential trade barriers, disruptions to supply chains, increased production costs, and a possible decrease in both direct and indirect employment.

On the same day, automaker and tech groups requested the administration to modify the proposal and allow more time before the rule is implemented.