U.S. to Propose Ban on Chinese Software and Hardware in Connected Vehicles

The U.S. Commerce Department is set to propose a ban on Chinese software and hardware in connected and autonomous vehicles due to national security concerns. This move reflects increasing apprehension about data collection by Chinese firms on American drivers and potential foreign manipulation of internet-connected vehicles.
The proposed regulation would prohibit the import and sale of vehicles from China that contain essential communications or automated driving system components. This represents a significant escalation in the U.S. efforts to restrict Chinese automotive technology. Recently, the Biden administration also implemented steep tariff hikes on Chinese imports, including a 100% duty on electric vehicles and increased tariffs on EV batteries and key minerals.
Commerce Secretary Gina Raimondo emphasized the substantial risks associated with Chinese technology in U.S. vehicles, warning of potentially catastrophic outcomes if software were compromised. President Biden ordered an investigation in February to assess the national security risks posed by Chinese vehicle imports, asserting that he would not allow such risks to proliferate.
The Commerce Department plans to open a 30-day public comment period before finalizing the rules. The proposed prohibitions would apply to nearly all newer vehicles on U.S. roads, as most are considered “connected.” The regulations could affect vehicles with certain Bluetooth, satellite, and wireless features, as well as highly autonomous vehicles capable of operating without a driver.
Additionally, the restrictions will extend to other U.S. adversaries, including Russia. Automakers have expressed concerns about the time required to implement changes to hardware and software, given the extensive testing and validation processes involved in vehicle production.
The final proposal, approved by the White House, aims to enhance the security of the supply chain for U.S. connected vehicles while excluding agriculture and mining vehicles. Biden noted that most cars are akin to “smartphones on wheels,” interconnected with various systems and infrastructures.