WASHINGTON, Oct 1 (Reuters) - About 20 Democrats in the

U.S. Congress on Tuesday urged Mexican President-elect Claudia

Sheinbaum to address national security concerns posed by

internet-connected vehicles produced by Chinese automakers in

Mexico.

All modern cars and trucks have onboard network hardware

providing internet access that allows them to share data with

devices both inside and outside the vehicle.

The lawmakers led by Representative Elissa Slotkin and

Senator Sherrod Brown asked Sheinbaum in a letter to establish a

national review and to send a delegation to the United States by

early 2025 for talks.

The U.S. fears that China, a strategic and economic rival as

well as trading partner, could use data collected by connected

vehicles for surveillance or, in extreme circumstances, remotely

control them through the internet and navigation systems.

"We believe that this body of data, under the control of the

Chinese Communist Party, is a national security threat," said

the letter, also signed by Senators Gary Peters, Debbie Stabenow

and Tammy Baldwin.

Last week, U.S. President Joe Biden proposed prohibiting

Chinese software and hardware in connected vehicles on American

roads, which would effectively bar Chinese cars and trucks from

the U.S. market and ban new vehicles produced in Mexico by

Chinese automakers.

China rejects the U.S. criticism, and has said the U.S. move

"has no factual basis, violates the principles of market economy

and fair competition, and is a typical protectionist approach."

The Biden administration is taking steps to prevent Chinese

automobiles from being sold the United States, and advocacy

groups have warned of what they say is unfair competition from

heavily state-subsidized Chinese electric vehicles.

This month, Biden hiked tariffs on Chinese-made EVs by 100%

even though only four Chinese light-duty vehicles are currently

sold in the United States. Congress approved legislation in 2022

to bar EVs built in China from receiving tax credits.

The lawmakers noted Chinese automakers have made inroads in

the Mexican market, saying it raised "significant concerns" that

they were now seeking to use Mexico as a base to enter the U.S.

market.

The letter noted that Chinese electric vehicle maker BYD

is planning to build a factory in Mexico, which it

said "raises the potential for Chinese companies to attempt to

circumvent these tariffs with production in Mexico."