The U.S. new car market is the second-largest in the world, it's starved of affordable options, and one of China's biggest automakers thinks it has found a way in. According to reporting from Reuters, Chery — the parent company of Chery, Jaecoo, Jetour, Omoda and iCar — says it still sees a path to selling vehicles in America despite the sweeping connected car ban, possibly by partnering with a U.S. automaker.
"We will be able to find a China-free solution in terms of hardware and software," Chery Vice President Charlie Zhang told Reuters. No partner has been named and no timeline was given, but the ambition is clear — and it raises big questions about the future of budget-friendly cars in the U.S.
Here's what we know, why Chery might succeed where other Chinese brands have hesitated, and what a potential entry would mean for American buyers.
The Obstacle: The Connected Car Ban Explained
Chinese-built cars are effectively barred from the U.S. right now. Under rules finalized by the U.S. Department of Commerce and NHTSA, vehicles that use software or hardware developed by Chinese companies for their connectivity systems cannot be sold in America — a restriction that has already shaped the plans of brands like Polestar, which builds cars in China.
The ban targets the connected vehicle stack: telematics, over-the-air software, driver-assistance systems and the underlying hardware. For a modern Chinese EV packed with smart features, that's not a detail — it's the core of the product.
This is why most Chinese automakers have pumped the brakes. Brands like BYD and Geely have openly expressed interest in the U.S., even hosting American journalists to sample their cars, but have concluded that now isn't the time given geopolitical tensions. Incumbent U.S. automakers have lobbied against Chinese entrants, and further restrictive legislation keeps being proposed.
Chery is taking a different tack: rather than waiting, it's proposing to engineer the problem away.
Chery's Plan: A "China-Free" Car Built With Detroit
Chery's proposal, in essence, is a joint-venture or partnership model with a U.S. automaker, where the connected hardware and software would be sourced or co-developed outside China's regulatory scope — a "China-free solution," as Zhang put it.
It wouldn't be unprecedented. Automakers have long used partnerships to bridge regulatory and market gaps, and Chery already has deep experience working with foreign partners: it has manufactured vehicles in joint ventures and exports to more than 80 countries. Chery also plans to enter Canada in 2026, which would give it a North American beachhead and valuable regulatory experience just across the border.
What the U.S. partnership could look like — contract manufacturing? A badge-engineered model on an American assembly line? A co-developed EV platform? — remains unspecified. But the statement itself is a shift in tone: where other Chinese brands see a closed door, Chery sees a door waiting to be engineered open.
Why Chery Might Actually Have a Shot
Skeptics will note that Chinese brands have talked about the U.S. before. But Chery's export track record gives the claim more weight than most:
- Chery is China's export champion. While its domestic sales are historically mid-pack, it has been the best-selling Chinese brand in export markets for years.
- Jaecoo — one of its sister brands alongside Lepas, Jetour and iCar — has been a breakout hit. The Jaecoo 7 PHEV was the UK's best-selling new car in two separate months of 2026, a remarkable result for a brand that barely existed in Europe a few years ago.
- The formula is price and equipment. Jaecoo's products are reasonably priced, feature-packed vehicles — exactly what resonates with buyers on a budget, and exactly what the cost-sensitive U.S. market currently lacks.
With average new car transaction prices in America well above $48,000, a wave of affordable, well-equipped Chinese-engineered vehicles — even under American badges — would find buyers quickly.
What It Would Take: Re-Engineering for the U.S. Market
If a Chery-group vehicle did reach American showrooms, the work would go far beyond swapping a brand badge. The connected car ban would force a rebuilt electronics architecture, but the changes run deeper:
- Charging standards. Chinese-market EVs use the GB/T connector, which is incompatible with anything in North America. A U.S.-market car would need the J1772 connector for AC charging and the NACS standard for fast charging — as covered in our EV charging standards explainer. The good news for buyers: that means any new entrant could use the same charging infrastructure as existing U.S. EVs from day one.
- Safety and certification. U.S. crash and emissions testing differs from Euro NCAP and China's C-NCAP protocols, requiring re-validation.
- Software and data compliance. Beyond the connected car rules, state-level privacy laws and federal data requirements would shape how any telematics system is built.
For buyers, this re-engineering is actually reassuring: a U.S.-compliant Chinese-engineered vehicle would be, in electrical terms, indistinguishable from any other American-market EV.
The Bigger Picture: Budget EVs and a Changing Market
Chery's U.S. push highlights a structural gap in the American market. The affordable end of the EV market is thin, and buyers shopping below $30,000 have few options. Chinese automakers have proven in Europe, Southeast Asia, Latin America and Australia that they can deliver feature-rich hybrids and EVs at mainstream prices — as we also saw with Volkswagen Anhui's aggressively priced ID. UNYX 09 sedan undercutting the Xiaomi SU7 in China, Chinese manufacturers are increasingly competing on value at global scale.
If a Detroit partnership opens the U.S. door, expect a two-stage effect: first, cheaper and better-equipped vehicles; second, a wave of new EV owners entering the market — many of them first-time electric car buyers figuring out home charging for the first time.
Timeline: When Could Chery Actually Arrive?
Realistically, don't expect Chery-badged cars at U.S. dealerships tomorrow. The company plans to enter Canada next year, and any U.S. solution would require a partner, re-engineered connectivity hardware, and a favorable regulatory environment. But the signal matters: one of the world's largest Chinese automakers is publicly planning for an American future rather than writing it off.
For buyers, the takeaway is simple. The Chinese EV question in America is a matter of "when," not "if" — and when it happens, the deciding factors will be price, features and compliance, in roughly that order.
Frequently Asked Questions
Can Chinese cars be sold in the U.S.?
Not in their current form. The connected car ban prohibits vehicles using Chinese-developed software or hardware for connectivity. Chinese brands would need to re-engineer vehicles with non-Chinese systems, as Chery is proposing.
How does Chery plan to enter the U.S. market?
Chery says it is open to a partnership with a U.S. automaker to build vehicles with a "China-free" hardware and software stack. No partner or timeline has been announced, but Chery plans to enter Canada in 2026.
Is the Jaecoo 7 available in America?
No. The Jaecoo 7 PHEV is sold in the UK, Europe and other export markets — where it became the UK's best-selling new car in two separate months of 2026 — but it is not yet sold in the U.S.
What charging plug would a Chinese-brand EV use in the U.S.?
Any U.S.-market vehicle would use the American standards: J1772 for AC charging and NACS for fast charging. GB/T, the Chinese standard, is not used in North America.