New Proposal Aims to Restrict Certain Vehicles for Security Reasons

I don't know who this is. Man speaks at podium.

The Biden administration is pushing for a ban on Chinese-made vehicles due to national security concerns.

At a Glance

  • The U.S. Commerce Department plans to propose a ban on Chinese software and hardware in connected and autonomous vehicles.
  • The Biden administration worries about data collection and potential foreign manipulation of these vehicles.
  • This ban is part of broader U.S. restrictions on Chinese technology affecting national security.
  • Major automakers caution that changes will take time due to extensive pre-production processes.

Biden Administration Takes Steps to Ban Chinese-Made Vehicles

The Biden administration has proposed a groundbreaking ban on Chinese-manufactured vehicles to bolster national security. This move centers around concerns related to Vehicle Connectivity Systems (VCS) and Automated Driving Systems (ADS) that could potentially be exploited for surveillance or disrupting vehicle operations. The proposal underscores the administration’s broader efforts to mitigate risks arising from foreign technologies, especially those from China and Russia, which could jeopardize U.S. critical infrastructure.

The U.S. Commerce Department is expected to lay out new regulations that would prohibit the import and sale of vehicles from China equipped with specific communication and automation technologies. This proposal is primarily driven by fears that Chinese-made software and hardware could be used to collect sensitive data on U.S. drivers and infrastructure, or even manipulate connected vehicles remotely. The regulations target technologies embedded in Bluetooth, satellite, and wireless systems, as well as highly autonomous vehicles.

Implications for Automakers and Consumers

Major automakers have responded with caution, highlighting that altering hardware and software would require considerable time due to the extensive pre-production engineering, testing, and validation processes. The administration plans for these prohibitions to become effective starting with the 2027 model year for software and the 2030 model year for hardware. Despite the challenges, the move aims to ensure the security of the supply chain for U.S. connected vehicles.

“You can imagine the most catastrophic outcome theoretically if you had a couple million cars on the road and the software were disabled,” she said.

Commerce Secretary Gina Raimondo has emphasized the significant threats posed by Chinese technologies in connected U.S. vehicles. As she noted, these vehicles are essentially “smartphones on wheels,” accumulating vast amounts of data that could be exploited by foreign adversaries. The proposed regulations will not only apply to Chinese technologies but also extend to those from other foreign adversaries, including Russia.

Public and Industry Reactions

The Commerce Department will allow a 30-day public comment period before finalizing the proposed rules. This period will enable industry leaders and the general public to voice their concerns and suggestions regarding the new regulations. The administration has stressed the importance of this measure as part of a more extensive strategy to protect national security and ensure that foreign-made technologies do not compromise the privacy and safety of U.S. citizens.

“China’s policies could flood our market with its vehicles, posing risks to our national security,” Biden said earlier. “I’m not going to let that happen on my watch.”

Recently, the administration imposed significant tariffs on Chinese imports, including a 100% duty on electric vehicles and new tariffs on EV batteries and critical minerals. The goal is twofold: to discourage reliance on Chinese technologies and to incentivize domestic production, thereby enhancing the resilience of the U.S. automotive industry.

Sources

1. US to propose ban on Chinese software, hardware in connected vehicles

RELATED ARTICLESMORE FROM AUTHOR