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The U.S. Commerce Department will announce new regulations prohibiting Chinese software and hardware in connected and autonomous vehicles (AVs) on American roads.
The move is part of the Biden administration’s broader strategy to mitigate the risks of foreign manipulation and data collection by Chinese companies.
Concerns Over Data Collection and Security and Biden Administration’s Broader Strategy
U.S. officials plan to restrict Chinese technology in autonomous and connected vehicles due to national security concerns, according to Reuters. The proposed regulations aim to prevent potential data collection on drivers and remote vehicle control by Chinese entities.
🚨🇺🇸🇨🇳 BREAKING: U.S. TO PROPOSE BAN ON CHINESE SOFTWARE IN AUTONOMOUS VEHICLES
The U.S. Commerce Department plans to propose banning Chinese software in Level 3 and above autonomous and connected vehicles, citing national security risks.
This move would also prevent Chinese… pic.twitter.com/THn8jk7ChM
— Mario Nawfal (@MarioNawfal) August 4, 2024
This move aligns with broader efforts to limit Chinese influence in critical sectors like transportation and technology.
The restrictions will cover software and key hardware components in both electric and gas-powered vehicles, including automated driving and vehicle communication systems. While innovative, these internet-connected features are seen as potential vulnerabilities for hacking or surveillance.
The initiative follows President Biden’s March investigation into cybersecurity risks linked to Chinese vehicle software.
The administration has already taken steps to limit China’s role in the U.S. automotive market, including a 100% tariff on Chinese electric vehicles announced in May.
Lael Brainard, director of the White House’s National Economic Council, is scheduled to speak in Detroit to outline the administration’s ongoing efforts to bolster the U.S. auto industry.
The new rules will also have a protectionist element, limiting the entry of Chinese automakers that rely on connected technology.
Impact on China and the Global EV Market
China has established itself as a leader in electric vehicle (EV) production, thanks to government subsidies and strategic investments.
Companies like BYD Co. have already surpassed Tesla in electric vehicle sales, and Chinese suppliers play a significant role in the global supply chain for smart vehicle technology.
In response to U.S. concerns, China has maintained that it respects data privacy and promotes fair competition.
China’s new global data security initiative calls for tech firms to respect the sovereignty, jurisdiction and governance of data of other states, and to meet law enforcement needs for overseas data through judicial assistance or other appropriate channels. #HuaweiFacts
— Huawei (@Huawei) September 8, 2020
The Commerce Department’s proposal will allow a 30-day public comment period before finalizing the rules.
Software prohibitions are expected to take effect within the 2027 model year, while hardware restrictions will begin in 2029 or the 2030 model year.
The rules will cover driver-assist and autonomous vehicle systems, Bluetooth tracking technologies, and vehicle-to-everything (V2X) communication systems.
These measures aim to give the U.S. auto industry time to develop its own supply chains for connected vehicles, reducing dependency on Chinese technology while enhancing data security.
