US Set to Ban Chinese Software in Autonomous Vehicles

The US Commerce Department is expected to propose a ban on Chinese software used in autonomous and connected vehicles in the coming weeks, according to informed sources.
The Biden administration plans to introduce a rule that would prohibit the use of Chinese software in vehicles with Level 3 automation and higher, effectively banning the testing of Chinese-made vehicles on US roads. The proposal will also aim to restrict vehicles equipped with Chinese-developed advanced wireless communication modules from operating in the US.
Under this proposed rule, automakers and suppliers will need to ensure that their connected and advanced autonomous vehicle software does not come from “foreign entities of concern,” such as China.
The Commerce Department had previously announced plans to issue rules in August addressing connected vehicle technologies and imposing limits on software from China and other adversarial nations. A spokesperson for the department highlighted concerns over national security risks associated with connected vehicle technologies.
The Bureau of Industry and Security will release the proposed rule, focusing on specific systems within vehicles. Industry stakeholders will have the opportunity to review and comment on the rule.
In response, a spokesperson for the Chinese Embassy in Washington argued that the electric vehicle industry is globalized, emphasizing that cooperation and fair competition drive technological progress. The spokesperson urged the US to adhere to market principles and international trade rules, advocating for a level playing field. China vowed to defend its lawful rights and interests.
In related news, China Evergrande New Energy Vehicle announced that a local court has ordered two of its units to enter bankruptcy and undergo reorganization, following recent creditor filings for such proceedings.