The U.S. Commerce Department is expected to propose a ban on Chinese software and hardware in connected and autonomous vehicles, citing national security concerns. Sources revealed that the announcement will be made on Monday.
The Biden administration has expressed significant worries about data collection by Chinese companies regarding U.S. drivers and infrastructure, as well as the potential for foreign interference in internet-connected vehicles and navigation systems. The proposed regulation would prohibit the import and sale of vehicles from China that contain key communications or automated driving system software or hardware.
This move marks a significant escalation in the U.S. efforts to restrict Chinese vehicles, software, and components. Just last week, the Biden administration announced substantial tariff increases on Chinese imports, including a 100% tariff on electric vehicles, alongside new hikes on EV batteries and essential minerals.
Commerce Secretary Gina Raimondo stated in May that the risks associated with Chinese software and hardware in U.S. connected vehicles are considerable. She warned of potentially catastrophic outcomes if critical software were compromised in millions of vehicles.
In February, President Joe Biden ordered an investigation into whether Chinese vehicle imports could pose national security threats related to connected-car technology and whether a ban on such software and hardware was necessary.
Biden emphasized, “China’s policies could flood our market with its vehicles, posing risks to our national security. I’m not going to let that happen on my watch.”
The Commerce Department will allow the public 30 days to comment before finalizing the rules. Nearly all newer vehicles on U.S. roads are considered “connected,” featuring onboard network hardware that enables internet access and data sharing with various devices.
The proposed regulations are expected to make the software prohibitions effective for the 2027 model year, while the hardware ban would take effect in January 2029 or with the 2030 model year. This ban would encompass vehicles with certain Bluetooth, satellite, and wireless features, as well as highly autonomous vehicles capable of operating without a driver.
In November, a bipartisan group of U.S. lawmakers raised concerns about Chinese auto and tech companies handling sensitive data while testing autonomous vehicles in the U.S. The proposed prohibitions would also apply to other foreign adversaries, including Russia.
A trade group representing major automakers, including General Motors, Toyota, Volkswagen, and Hyundai, cautioned that implementing changes to hardware and software would be time-consuming. The automakers emphasized that their systems undergo extensive pre-production engineering and validation processes and cannot be easily replaced with components from different suppliers.
The Commerce Department declined to comment on Saturday. Earlier in August, Reuters reported details of a plan that would effectively prevent Chinese automakers from testing autonomous vehicles on U.S. roads. Currently, there are relatively few Chinese-made light-duty vehicles imported into the United States.
The White House has approved the final proposal, which aims to enhance the security of the supply chain for connected vehicles in the U.S. While it will apply to all vehicles on American roads, it will not include agriculture or mining vehicles.
Biden remarked that most cars are now connected like smartphones, linking to navigation systems, critical infrastructure, and manufacturers.
