The Trump administration removed the official who led efforts to ban Chinese connected vehicles from the US market, weeks after the president invited Chinese automakers to build factories on American soil.
Elizabeth Cannon, executive director of the Office of Information and Communications Technology and Services, resigned Wednesday following pressure from senior officials, according to Reuters.
The office, established during Trump’s first term within the Bureau of Industry and Security, played a major role in finalizing rules under President Joe Biden that effectively prohibited Chinese passenger vehicles over data security concerns.
Exactly a year ago, the Bureau of Industry and Security finalized rules prohibiting transactions involving connected vehicles that integrate hardware or software with links to China or Russia, or those components sold separately.
The rule determined that hardware and software in Vehicle Connectivity Systems and software in Automated Driving Systems pose unacceptable national security risks when designed, developed, manufactured, or supplied by entities tied to China or Russia.
“This final rule reflects significant stakeholder feedback and protects our national security while reducing unintended impacts,” Cannon said when the rule was announced in January 2025.
“We look forward to working with all relevant parties to facilitate compliance as the rule comes into effect,” Cannon added back then.
The requirement remains in effect.
Trump signaled earlier this month openness to Chinese automakers building factories in the US.
“If they want to come in and build a plant and hire you and hire your friends and your neighbors, that’s great, I love that,” Trump said. “Let China come in.”
A Bureau of Industry and Security spokesperson said staffing changes “will strengthen the Office and ensure that it continues to deliver for the American people.”
Cannon’s last day is expected to be February 20.
China Probes on Hold
Several investigations advanced under Cannon’s leadership have stalled.
The office had been examining possible restrictions on Chinese router maker TP-Link and telecommunications companies China Telecom and China Unicom, the Journal reported.
A rule targeting China- and Russia-linked heavy trucks and buses, which the office had indicated would follow the passenger vehicle ban, has not materialized.
The Commerce Department also recently withdrew a proposal to restrict Chinese drones after sending it to the White House for review months earlier.
The White House recently approved exports of Nvidia’s H200 and other advanced AI chips to China ahead of a planned meeting between Trump and Chinese President Xi Jinping in April.
Treasury Secretary Scott Bessent said this week the US-China relationship has reached a “very good equilibrium.”
“When the leaders are setting the tone for the overall relationship, if there are glitches, if there are hiccups, then they can jump on phone calls and de-escalate very quickly,” he told Politico earlier this week in Davos.
US Reaction on Canada-China
Trump endorsed last week Canada’s tariff agreement with China.
“Well, it’s okay. That’s what he should be doing,” Trump said. “I mean, it’s a good thing for him to sign a trade deal. If you can get a deal with China, you should do that.”
The US President’s comments came hours after the Senator Brian Schatz said the US got “absolutelly rolled” in the Canada-China trade agreement, which allows 49,000 EVs to be sold in the country at a tariff rate of 6.1% — down from the 100% imposed in 2024.
Schatz wrote on X that Washington’s deteriorating relationship with Ottawa led to a foreign policy failure with economic consequences.
“We just got absolutely rolled in this Canada – China deal,” Schatz, a Democrat from Hawaii, wrote. “A stark foreign policy failure with domestic economic consequences.”
The senator blamed the outcome on the Trump administration’s hostile approach toward Canada.
“The most basic principle in politics and geopolitics is loyalty to friends. And we weren’t just disloyal – we were hostile. So here we are,” Schatz added.
