The move significantly tightens US restrictions on Chinese vehicles, software and parts.
The U.S. Commerce Department has proposed banning key Chinese software and hardware in connected vehicles from U.S. roads over national security concerns. The move would effectively ban Chinese cars and trucks from the U.S. market.
The planned regulations, introduced Monday, would also force U.S. and other major automakers to remove key Chinese software and hardware from vehicles in the U.S. in the coming years.
President Joe Biden’s administration has raised concerns about the collection of data on U.S. drivers and infrastructure by connected Chinese vehicles and possible foreign manipulation of vehicles connected to the internet and navigation systems. In February, the White House ordered an investigation.
The proposed bans would prevent Chinese automakers from testing self-driving cars on U.S. roads and would also apply to Russian-made vehicle software and hardware. They could also be expanded to other U.S. adversaries.
The proposal would put software bans into effect in the 2027 model year. The hardware ban would go into effect in the 2030 model year, or 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 would apply to all vehicles on the road, but would exclude agricultural or mining vehicles not used on public roads, as well as drones and trains.
The move is a significant escalation in U.S. restrictions on Chinese vehicles, software and components. This month, the Biden administration imposed steep tariff increases on Chinese imports, including a 100 percent tariff on electric vehicles (EVs) and hikes on EV batteries and key minerals.
“When foreign adversaries build software to make a vehicle, it means it can be used for surveillance, remotely controlled, threatening the privacy and safety of Americans on the road,” said Commerce Secretary Gina Raimondo. “In an extreme situation, a foreign adversary could disable or take over all of their vehicles driving in the United States all at once, causing accidents and blocking roads.”
Risk of disruption
Relatively few Chinese-made cars or light trucks are imported into the U.S. Raimondo said the department is taking action “before suppliers, automakers and auto parts that are tied to China or Russia become commonplace and widespread. … We’re not going to wait until our roads are full of cars and the risk is extremely high.”
Virtually all newer cars and trucks are considered “connected” with built-in networking hardware for internet access, allowing data to be shared with devices inside and outside the vehicle.
The Commerce Department said the rule would amount to a ban on all vehicles produced in China, but that Chinese automakers would be able to apply for “specific permits” for exemptions.
“We currently expect that any vehicle manufactured in China and sold in the U.S. will be subject to the ban,” said Liz Cannon, director of the Commerce Department’s Information and Communications Technology Division.
She added that the regulations would force General Motors (GM) and Ford Motor to stop selling vehicles imported from China in the US.
The U.S. has ample evidence that China pre-planted malware into critical U.S. infrastructure, White House national security adviser Jake Sullivan said at a 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.
Chinese Foreign Ministry spokesman Lin Jian said China urges Washington to “respect market principles and provide Chinese companies with an open, fair, transparent and non-discriminatory business environment. China will firmly protect its legitimate rights and interests.”
The Alliance for Automotive Innovation, a group representing major automakers — including GM, Toyota, Volkswagen and Hyundai — said some automakers may need more time to comply with the regulations.
The group said “very little” connected vehicle hardware or software “enters the U.S. from China. But this rule will require automakers to find alternative suppliers in some cases.”