Biden Proposes Stopping Chinese Components And Software On Connected Vehicles In The US

Huawei's Luxeed S7 is equipped with a lot of advanced Huawei technology in it, including hardware and software. (Doc. Carnewschina)

JAKARTA - Ahead of the end of President Joe Biden's administration, the United States (US) Department of Commerce proposed banning important Chinese-made components and software on vehicles connected on US roads. This step was taken due to national security concerns, and would effectively stop the entry of Chinese cars and trucks into the US market.

This planned regulation, as reported by Reuters, September 24, will also force American automakers and others in the future to remove Chinese components and software from their vehicles in the United States.

President Joe Biden has voiced concerns about US driver data collection and infrastructure by connected Chinese vehicles, as well as potential foreign manipulation of vehicles connected to the internet and navigation systems. Even in February, the White House ordered an investigation into this matter.

The proposed ban will prevent Chinese automakers from testing self-driving (swakemudi) cars on US roads. This ban also applies to software and vehicle components produced by Russia and can be expanded to other countries deemed US opponents.

The proposal will begin to apply to vehicle software starting in the 2027 model. Meanwhile, the component ban will apply to the 2030 or January 2029 models.

The Commerce Department gave the public 30 days to comment on the proposal and hopes to complete it by January 20. This rule will cover all vehicles on highways, but excluding agricultural or mining vehicles that are not used on public roads, as well as drones and trains.

This move represents a significant increase in US restrictions on Chinese vehicles, software, and components. This month, the Biden government set a high tariff increase on Chinese imports, including 100 percent import duty for electric vehicles and increased duties for electric vehicle batteries and other important minerals.

"When foreign parties build software to build vehicles, it means the software can be used for surveillance, remotely controllable, which threatens the privacy and safety of Americans on the highway," said Commerce Minister Gina Raimondo.

"In extreme situations, foreign enemies can kill or take control of all their vehicles operating in the United States at once, cause accidents, and block roads," he added.

Currently, only a few Chinese-made light trucks or trucks are imported into the US. Raimondo said the department acted "before suppliers, automakers, and car components associated with China or Russia became common and widespread.

Almost all new cars and trucks are considered "connected" with internal network hardware for internet access, allowing data sharing with devices inside and outside the vehicle.

The Commerce Department said the rules would have an impact on banning all vehicles manufactured in China but would allow Chinese automakers to seek "special authorization" for exemptions.

"We anticipate at this time that all vehicles manufactured in China and sold in the US will be banned," said Liz Cannon, who heads the Commerce Department's information and communications technology office.

He added the regulation would force General Motors (GM) and Ford Motor (FN) to stop selling imported vehicles from China in the US.

The United States has a lot of evidence that China has placed malware in critical American infrastructure, White House National Security Adviser Jake Sullivan said at the briefing.

"With the potential of millions of vehicles on the road, each with a lifetime of 10 to 15 years, the risk of disruption and sabotage increases dramatically," Sullivan said.

Meanwhile, Chinese Foreign Ministry spokesman Lin Jian said China urged Washington to respect market principles and provide Chinese companies with an open, fair, transparent, and non-discriminatory business environment. China will firmly protect legitimate rights and interests.