23 September 2024
According to two sources the U.S. Commerce Department is expected to announce a proposal to ban Chinese software and hardware in connected and autonomous vehicles on American roads due to national security concerns.
The Biden administration has expressed serious worries about Chinese companies potentially collecting data on U.S. drivers and infrastructure, as well as the risk of foreign manipulation of internet-connected vehicles and navigation systems.
The proposed regulation would prohibit the import and sale of vehicles from China that contain essential communications or automated driving system software or hardware. This move represents a significant escalation in the U.S. efforts to restrict Chinese vehicles, software, and components. Last week, the administration implemented substantial tariff increases on Chinese imports, including a 100% tariff on electric vehicles, alongside new hikes on EV batteries and key minerals.
Commerce Secretary Gina Raimondo emphasized in May the significant risks associated with Chinese software or hardware in connected U.S. vehicles. “You can imagine the most catastrophic outcome theoretically if you had a couple million cars on the road and the software were disabled,” she remarked.
In February, President Joe Biden ordered an investigation into the national security risks posed by Chinese vehicle imports concerning connected-car technology, considering a potential ban on the relevant software and hardware in all vehicles on U.S. roads. He stated, “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.”
Nearly all newer vehicles in the U.S. are classified as “connected,” equipped with onboard network hardware that enables internet access and data sharing with devices both inside and outside the vehicle.
The department also intends to propose that software prohibitions take effect within the 2027 model year, while the hardware ban will be implemented in January 2029 or within the 2030 model year. These prohibitions would include vehicles with certain Bluetooth, satellite, and wireless capabilities, as well as highly autonomous vehicles that can operate without a driver.
A bipartisan group of U.S. lawmakers raised concerns in November about Chinese auto and tech companies collecting and handling sensitive data while testing autonomous vehicles in the U.S. The prohibitions would also extend to other U.S. adversaries, including Russia, according to the sources.
A trade group representing major automakers, including General Motors, Toyota, Volkswagen, and Hyundai, warned that altering hardware and software would be a lengthy process. They noted that their systems undergo extensive pre-production engineering, testing, and validation and cannot easily be replaced with components from different suppliers.
The Commerce Department declined to comment on Saturday.
The White House approved the final proposal on Thursday, as noted on a government website. The rule is designed to secure the supply chain for U.S. connected vehicles and will apply to all vehicles on American roads, with exceptions for agricultural and mining vehicles.
Biden highlighted that most cars today are connected like “smartphones on wheels,” linking to phones, navigation systems, critical infrastructure, and the companies that manufacture them.
