Due to national security concerns, the U.S. Commerce Department is anticipated to propose on Monday banning Chinese technology and software from connected and autonomous vehicles driven on American roads, TNC understands.
The Biden administration is extremely concerned about Chinese firms gathering data on American drivers and infrastructure, as well as possible foreign manipulation of internet-connected vehicles and navigation systems.
The sources, who wished to remain anonymous due to the decision not being made public, claimed that the new legislation would prohibit the import and sale of automobiles from China that have hardware or software related to automated driving systems or critical communications.
The action represents a major increase in the existing limitations imposed by the US on Chinese autos, software, and parts. The Biden administration imposed significant tariff increases on Chinese imports last week, including additional increases on EV batteries and essential minerals in addition to a 100% penalty on electric cars.
Chinese hardware or software poses serious hazards to linked U.S. automobiles, according to a May statement from Commerce Secretary Gina Raimondo.
“You can imagine the most catastrophic outcome theoretically if you had a couple million cars on the road and the software were disabled,” she stated.
In February, President Joe Biden issued an executive order to conduct an investigation into whether connected automobile technology from China poses a threat to national security and whether or not such hardware and software ought to be prohibited from being installed in any vehicle on American soil.
“China’s policies could flood our market with its vehicles, posing risks to our national security,” Biden had stated before. “I’m not going to let that happen on my watch.”
According to the sources, the Commerce Department intends to allow the public to comment for 30 days prior to finalizing the regulations. On American roadways, almost every modern car is regarded as “connected.” These cars can share data with devices inside and outside the car thanks to onboard network technology that permits internet access.
Additionally, the government intends to suggest that the hardware ban begin in January 2029 or the 2030 model year, while the software restriction would go into place in the 2027 model year. The cars in question would be prohibited from having certain wifi, satellite, and Bluetooth systems, as well as fully autonomous cars that might function without a driver.
In November, a group of bipartisan US lawmakers expressed concern over Chinese tech and auto companies gathering and using private information while conducting trials for self-driving cars in the US.
The sources claimed that the bans would also apply to other foreign enemies of the United States, such as Russia.
Changing hardware and software would take time, according to a trade body that represents major automakers like General Motors (GM.N), opens new tab, Toyota Motor (7203.T), Volkswagen (VOWG_p.DE), Hyundai (005380.KS), and others.
The automakers stated that their systems “undergo extensive pre-production engineering, testing, and validation processes and, in general, cannot be easily swapped with systems or components from a different supplier.”
On Saturday, the Commerce Department declined to comment. Details of a scheme to have Chinese automakers on American roads were first revealed by Reuters in early August. Imported light-duty automobiles from China are comparatively rare in the US market.
A government website states that the White House approved the final proposal on Thursday. The goal of the regulation is to protect the supply chain security for cars connected to the United States. According to the reports, it will cover every car on American roads, but not vehicles used in mining or agriculture.
As Biden pointed out, the majority of cars are networked devices, much like smartphones, and are connected to vital infrastructure, phones, navigation systems, and manufacturers.
