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A proposed ban on Chinese software in connected cars could effectively lock China out of the American EV market, outside of manufacturing other companies’ cars.
This technology includes computer systems that control vehicle movement, cameras and sensors that enable automated driving and sensors that can record detailed information about everything from drivers and passengers to geographic data and critical infrastructure.
The collection of such data allows malicious actors to disrupt vehicles or infrastructure operations remotely, posing a risk to national security.
Russia is also included in the ban, though it produces almost nothing that can be banned.
VCS and ADS Included in Biden’s Proposed Ban
The proposed ban covers “vehicle connectivity systems” (VCS) or systems that connect vehicles to the outside world, including Wi-Fi, Bluetooth, cellular, and satellite modules, alongside “automated driving systems” (ADS) that enable fully autonomous vehicles to operate without a driver.
It will include imports and sales of connected vehicles with ADS and VCS software and imports of VCS hardware equipment.
All vehicles used on public roads will be affected, including cars, buses, and trucks. Vehicles not used on public roads, such as those used for mining or agriculture, will not be part of the ban.
Jake Sullivan, President Biden’s national security adviser, spoke to reporters about the “new vulnerabilities and threats” that connected vehicles and their technology bring and the “large volumes of information” they collect on drivers.
The Department of Commerce may allow small producers to receive an exemption “on an exceptional basis” to avoid industry disruption.
This ban would take effect for software for Model Year 2027 and for hardware for Model Year 2030, or January 1st, 2029, for units without model year.
A Proactive Move to Protect US National Security
Though few, if any, cars with Chinese software are currently in the US, the ban could further push China out of the American EV market. These measures are proactive, according to commerce secretary Gina Raimond, who said they were to protect the US from “potential surveillance” and that it was “scary to contemplate the cyber risks, espionage risks, that these pose.”
The proposed ban follows action taken by Biden in May this year. It is designed to protect US automakers from increasing competition from low-cost Chinese EVs. The tariff on Chinese EVs increased from 25% to 100%, limiting Chinese imports.
This also seems like the logical next step following February’s Biden-ordered investigation into the threat to the US from technology in Chinese EVs. The Commerce Department investigation aimed to decide whether Chinese vehicles posted a national security risk and sought comment from members of the public.
It also examined the claim that American manufacturers selling vehicles to Chinese customers were forced by Chinese officials to use Chinese software in their vehicles.
