The US Commerce Department is set to propose a ban on Chinese software and hardware in autonomous and connected vehicles, citing national security concerns. The Biden administration is worried about Chinese companies collecting data from US drivers and the potential for foreign interference in internet-connected cars.
The proposed regulation would prevent the import and sale of vehicles equipped with Chinese technology for communication or autonomous driving. Commerce Secretary Gina Raimondo warned of severe risks, saying, “You can imagine the most catastrophic outcome if millions of cars had their software disabled.”
The move follows other US measures against China, including increased tariffs on electric vehicles and key minerals. The Commerce Department will allow 30 days for public input, with the software ban potentially starting by 2027 and hardware restrictions by 2029 or 2030.
“China’s policies could flood our market with its vehicles, posing risks to our national security,” Biden said earlier. “I’m not going to let that happen on my watch.”
In November, a bipartisan group of US lawmakers expressed concerns over Chinese automotive and tech companies collecting sensitive data while testing autonomous vehicles in the US. The proposed restrictions on Chinese technology in these vehicles would also extend to other foreign adversaries, including Russia.
A trade group representing major automakers, such as General Motors, Toyota, and Volkswagen, cautioned that transitioning to alternative hardware and software suppliers would require significant time. Automakers stressed that their systems undergo extensive pre-production testing and validation, making it difficult to easily replace components from different suppliers.
The US Commerce Department declined to comment on Saturday regarding new regulations targeting Chinese-made vehicles on American roads. Reuters first reported in August on a plan aimed at curbing the presence of Chinese automakers in the US market. Although few Chinese light-duty vehicles are currently imported, the White House has now approved the proposal, according to a government website.
The rule, designed to secure the supply chain for connected vehicles, will apply to all US vehicles except agricultural and mining ones. President Biden highlighted that most cars are now “smartphones on wheels,” linked to phones, navigation, and critical infrastructure.
