US Proposes Ban on Chinese and Russian Tech in Connected Cars, Citing Security Risks

Commerce Department Proposes Ban on Chinese and Russian Tech in Connected Vehicles

The U.S. Commerce Department has announced a proposed rule to ban the import and sale of connected and autonomous vehicles containing Chinese and Russian software and hardware. The move, aimed at protecting national security and U.S. drivers, comes as concerns grow over the potential vulnerabilities of these technologies.

Under the proposed timeline, software prohibitions would take effect for the 2027 model year, while hardware restrictions would begin with the 2030 model year or January 1, 2029, for units without a designated model year.

U.S. Secretary of Commerce Gina Raimondo emphasized that the measure is focused on national security rather than trade or economic advantages. “Connected vehicles are yet another technology where China and other adversarial nations are trying to exploit our openness to undermine our national security,” Raimondo stated.

The proposal addresses concerns about the potential exposure of personal information and the risk of foreign adversaries controlling multiple vehicles through microphones, cameras, GPS tracking, and Bluetooth technology.

Janka Oertel from the European Council on Foreign Relations highlighted the importance of controlling data flows and software updates, describing vehicles as “mobility platforms” that monitor behavior and surroundings.

While Chinese and Russian software presence in U.S. vehicles is currently minimal, hardware components pose a more complex challenge. The Commerce Department aims to prevent widespread adoption of Chinese or Russian automotive technology in the U.S. market.

The proposed rule would ban the import and sale of vehicles with Chinese and Russian software and hardware, including components enabling autonomous operation without a driver. It would also apply to U.S.-made vehicles using such technology but exclude non-public road vehicles like those used in agriculture or mining.

Industry response has been mixed. While U.S. automakers support national security goals, the Alliance for Automotive Innovation expressed concerns about supply chain adjustments. John Bozzella, CEO of the Alliance, noted that the lead time may be sufficient for some automakers but not all.

Commerce officials have consulted with major auto companies and industry associations. Public comments are invited and due 30 days after the rule’s publication, with finalization expected by the end of the Biden Administration.

This proposal aligns with broader efforts by the Biden administration to reduce U.S. dependence on China, following recent measures against cheap Chinese products, including electric vehicles.

As the automotive industry grapples with these potential changes, the impact on global supply chains and international trade relations remains to be seen.