The U.S. Commerce Department on Monday proposed banning key Chinese software and hardware in connected vehicles from U.S. roads over national security concerns. The move would ban virtually all Chinese cars from the U.S. market.
The planned regulations, first reported by Reuters, would force U.S. and other major automakers to remove key Chinese software and hardware from vehicles in the United States in the coming years.
The Biden administration has raised serious concerns about Chinese companies collecting data on American drivers and infrastructure via connected vehicles, as well as potential foreign manipulation of internet-connected vehicles and navigation systems. The White House ordered an investigation into the potential dangers in February.
The bans would prevent Chinese automakers from testing self-driving cars on U.S. roads and would also apply to vehicle software and hardware produced by other U.S. foreign adversaries, including Russia.
“When foreign adversaries develop software that allows a vehicle to be used for surveillance and remote control, it poses a threat to the privacy and safety of Americans on the road,” Commerce Secretary Gina Raimondo said at a briefing.
“In an extreme situation, a foreign adversary could disable or commandeer all of their vehicles driving in the United States, causing accidents and blocking roads.”
The move is a significant escalation in the United States’ ongoing restrictions on Chinese vehicles, software and components. Earlier this month, the Biden administration imposed steep tariff increases on Chinese imports, including a 100% tariff on electric vehicles and new hikes on EV batteries and key minerals.
Relatively few Chinese-made cars or light trucks are imported into the United States. But Raimondo said the department is taking action “before suppliers, automakers and auto parts linked to China or Russia become commonplace and widespread in the U.S. automotive sector. … We’re not going to wait until our roads are full of cars and the risk is extremely high before we take action.”
Virtually all newer cars and trucks are “connected” with built-in networking hardware that enables internet access. This allows them to share data with devices both inside and outside the vehicle.
A senior administration official confirmed that the proposal would effectively ban all existing Chinese light cars and trucks from the U.S. market, but added that it would allow Chinese automakers to apply for “specific authorizations” for exemptions.
The United States has ample evidence that China has pre-planted malware into critical U.S. infrastructure, White House national security adviser Jake Sullivan said at the same briefing.
“With potentially millions of vehicles on the road, each with a lifespan of 10 to 15 years, the risk of disruption and sabotage increases dramatically,” Sullivan said.
The Chinese embassy in Washington last month criticized the planned move to restrict Chinese vehicle exports to the United States: “China urges the US to strictly abide by market principles and international trade rules, and create a level playing field for companies from all countries. China will vigorously defend its legal rights and interests.”
The proposal would see software bans take effect from model year 2027, while the hardware ban would take effect from model year 2030 or in January 2029.
The Commerce Department is giving the public 30 days to comment on the proposal and hopes to finalize it by Jan. 20. The rules apply to all vehicles on the road, but exclude agricultural or mining vehicles that are not used on public roads.
The Alliance For Automotive Innovation, a group representing major automakers including General Motors, Toyota, Volkswagen and Hyundai, warns that it takes time to change hardware and software.
The group noted that hardware and software for connected vehicles are being developed around the world, including in China. However, it did not specify to what extent Chinese-made components are common in U.S. models.
(Reporting by David Shepardson; Editing by Edwina Gibbs)