JAKARTA The United States Department of Commerce is expected to propose a ban on the use of Chinese-made software and hardware in connected and autonomous vehicles on US roads starting Monday, September 23, according to two sources. This step was taken due to concerns over national security regarding data collection by Chinese companies as well as potential foreign manipulation of vehicles connected to the internet and navigation systems.
President Joe Biden's administration has expressed concern about data collection by Chinese companies from US drivers and infrastructure, as well as the risk of manipulation of connected vehicles. The proposed regulations will prohibit imports and sales of vehicles from China using software or communication hardware as well as an automatic driving system.
This step is a significant escalation in US restrictions on Chinese-made vehicles, software, and components. Last week, the Biden administration set a large tariff increase on Chinese imports, including 100% import duty for electric vehicles as well as rising on battery electric vehicles and other important minerals.
US Commerce Secretary Gina Raimondo said in May that the risks posed by China's software or hardware in connected vehicles in the US were very serious. "Imagine the worst results that could happen if millions of cars on the road and the software is disabled," he said.
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President Joe Biden in February ordered an investigation into whether vehicle imports from China were at risk of national security through connected vehicle technology and whether the software and hardware needed to be banned for all vehicles on US roads.
The Commerce Department plans to provide the public with 30 days to comment before the regulation is finalized. Most modern vehicles in the US are considered "connected," with network hardware that allows internet access and sharing data with devices inside and outside the vehicle.
The rules will also propose implementing a ban on software from vehicle models in 2027, and a hardware ban will take effect in January 2029 or vehicle models by 2030. This ban will include vehicles with certain bluetooth, satellite, and wireless features, as well as autonomous vehicles that do not require drivers.
The ban will also be extended to other foreign enemies, including Russia.
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