7 months ago
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The US Commerce Department on Monday proposed prohibiting key Chinese software and hardware in connected vehicles on American roads due to national security concerns - a move that would effectively bar nearly all Chinese cars from entering the US market.
The planned regulation, first reported by Reuters, would also force American and other major automakers in the coming years to remove key Chinese software and hardware from vehicles in the United States.
The Biden administration has raised serious concerns about the collection of data by Chinese companies on US drivers and infrastructure through connected vehicles as well as about potential foreign manipulation of vehicles connected to the internet and navigation systems. The White House ordered an investigation into the potential dangers in February.
The prohibitions would prevent testing of self-driving cars on US roads by Chinese automakers and extend to vehicle software and hardware produced by other US foreign adversaries including Russia.
"When foreign adversaries build software to make a vehicle that means it can be used for surveillance, can be remotely controlled, which threatens the privacy and safety of Americans on the road," Commerce Secretary Gina Raimondo told a briefing.
"In an extreme situation, a foreign adversary could shut down or take control of all their vehicles operating in the United States all at the same time causing crashes, 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 locked in steep tariff hikes on Chinese imports, including a 100% duty on electric vehicles as well as new hikes on EV batteries and key minerals.
There are relatively few Chinese-made cars or light-duty trucks imported into the United States. But Raimondo said the department is acting "before suppliers, automakers and car components linked to China or Russia become commonplace and widespread in the US automotive sector... We're not going to wait until our roads are filled with cars and the risk is extremely significant before we act."
Nearly all newer cars and trucks are considered "connected" with onboard network hardware that allows internet access, allowing them to share data with devices both inside and outside the vehicle.
A senior administration official confirmed the proposal would effectively ban all existing Chinese light-duty cars and trucks from the US market, but added it would allow Chinese automakers to seek "specific authorizations" for exemptions.
