The US Commerce Department is set to propose a groundbreaking regulation on Monday, prohibiting Chinese software and hardware in connected and autonomous vehicles on American roads, citing national security concerns. This move marks a significant escalation in the US’s ongoing restrictions on Chinese vehicles, software, and components.
The proposed regulation would effectively ban the import and sale of vehicles from China equipped with key communications or automated driving system software or hardware. This decision comes after the Biden administration raised serious concerns about Chinese companies collecting data on US drivers and infrastructure, as well as the potential for foreign manipulation of vehicles connected to the internet and navigation systems.
According to Commerce Secretary Gina Raimondo, “The risks of Chinese software or hardware in connected US vehicles are significant. Imagine the catastrophic outcome if a couple million cars on the road had their software disabled.” President Joe Biden had ordered an investigation in February into whether Chinese vehicle imports pose national security risks over connected-car technology.
The Commerce Department plans to allow 30 days for public comment before finalizing the rules. The proposed regulations would take effect in the 2027 model year for software and January 2029 or the 2030 model year for hardware. Vehicles with certain Bluetooth, satellite, and wireless features, as well as highly autonomous vehicles, would be subject to the prohibitions.
A bipartisan group of US lawmakers had previously expressed concerns about Chinese auto and tech companies collecting and handling sensitive data while testing autonomous vehicles in the US. The prohibitions would also extend to other foreign US adversaries, including Russia.
Major automakers, including General Motors, Toyota Motor, Volkswagen, and Hyundai, have warned that changing hardware and software would take time due to extensive pre-production engineering, testing, and validation processes.
The White House signed off on the final proposal on Thursday, aiming to ensure the security of the supply chain for US connected vehicles. The rule will apply to all vehicles on US roads, excluding agriculture or mining vehicles.
