US Moves To Ban Chinese Software, Hardware In Connected Vehicles Over Security Concerns: Report

The US Commerce Department is set to propose a significant ban on Chinese software and hardware in connected and autonomous vehicles due to national security threats, as per a Reuters report. 

The Biden administration is increasingly alarmed about the potential for Chinese companies to collect sensitive data on American drivers and infrastructure, raising fears of foreign manipulation of vehicles equipped with internet connectivity and navigation systems.

Reuters sources indicate that the proposed regulation would prohibit the import and sale of vehicles from China that contain key communication or automated driving technologies. This initiative marks a substantial escalation in the United States' ongoing restrictions on Chinese automotive imports, which recently included steep tariff hikes, such as a 100 per cent duty on electric vehicles and increased tariffs on EV batteries and critical minerals.

Commerce Secretary Gina Raimondo has previously highlighted the significant risks associated with Chinese technology in US vehicles. In a recent statement, she cautioned against the potential for catastrophic outcomes if malicious actors were to disable the software in millions of vehicles on American roads. Earlier this year, President Biden ordered an investigation into the national security implications of Chinese vehicle imports, emphasizing that he would not allow China's policies to compromise US security.

The Commerce Department plans to allow the public 30 days to comment on the proposed rules before finalising them. The prohibitions on software are expected to take effect with the 2027 model year, while hardware restrictions would begin in January 2029 or the 2030 model year. The regulations would include vehicles with various connectivity features, including Bluetooth, satellite, and wireless technologies, as well as highly autonomous vehicles capable of operating without human drivers.

Concerns about data collection by Chinese companies have prompted bipartisan alarm among US lawmakers, particularly regarding their testing of autonomous vehicles on American roads. Notably, the prohibitions will also extend to other foreign adversaries, including Russia.

Major automakers, including General Motors and Toyota, have expressed apprehension about the challenges posed by the proposed regulations. They emphasised that altering existing hardware and software systems is a complex process that requires extensive pre-production engineering and validation.

(Inputs from Reuters)