The US Commerce Department is expected to propose a ban on the use of Chinese software and hardware in connected and autonomous vehicles on American roads, citing national security concerns.
The proposed regulation, set to be revealed on Monday, 23rd September, 2024, would prohibit the import and sale of vehicles from China equipped with key communications or automated driving system technology. This stands as a significant escalation in the United States’ efforts to limit Chinese influence in the automotive sector, following recent tariff hikes on Chinese electric vehicles (EV) and related components.
Concerns about Chinese firms collecting sensitive data on US drivers and infrastructure, and the potential for foreign manipulation of vehicles connected to the internet and navigation systems, have been raised by the Biden administration. In May, Commerce Secretary, Gina Raimondo, highlighted the risks, suggesting that a cybersecurity attack on millions of connected vehicles could lead to catastrophic outcomes.
President Joe Biden previously ordered an investigation in February into the potential risks posed by Chinese vehicle imports and whether connected-car technology from China should be banned. “China’s policies could flood our market with its vehicles, posing risks to our national security,” Biden said.
According to Reuters, the new rule, which is expected to be open for public comment for 30 days, would see the software ban come into effect in the 2027 model year, with hardware bans taking effect by January 2029. The prohibition extends to highly autonomous vehicles and covers specific wireless and satellite features that could allow remote manipulation or data breaches.
Automakers have warned that adapting to the new regulations will take time. Systems in vehicles typically undergo extensive testing and engineering validation, meaning replacements or upgrades from different suppliers cannot be easily implemented.
The proposed rule also applies to vehicles originating from other US adversaries, including Russia. While Chinese-made vehicles account for a small portion of U.S. imports, the measure is intended to safeguard critical vehicle infrastructure and ensure the security of supply chains.
The White House signed off on the proposal last week, further tightening restrictions on Chinese vehicles and their components in the US market.
