New York – The U.S. Commerce Department has announced a new proposed rule that seeks to ban the sale of connected and autonomous vehicles in the United States equipped with Chinese and Russian software and hardware. The goal of this measure is to protect national security and the safety of American drivers.
According to the agency, while there is currently a minimal presence of Chinese and Russian software in the U.S., the issue becomes more complex when it comes to hardware. Therefore, the proposed ban on software will take effect starting with the 2027 model year, while the ban on hardware will take effect in 2030, or January 1st, 2029 for units without a model year.
This proactive measure is crucial in light of the increasing use of advanced technology in vehicles, such as microphones, cameras, GPS tracking, and Bluetooth connectivity, which can make Americans vulnerable to malicious actors and potentially compromise their personal information. In extreme cases, foreign adversaries could even take control of multiple vehicles at once, causing accidents and blocking roads, as explained by U.S. Secretary of Commerce Gina Raimondo during a press call on Sunday.
Raimondo emphasized that this action is not motivated by trade or economic advantage, but rather solely by national security concerns. She also reassured that currently, there are not many Chinese or Russian cars on U.S. roads. However, she pointed out that the rapid integration of Chinese vehicles in Europe and other regions should serve as a cautionary tale for the U.S.
In Europe, concerns have arisen regarding the extensive software functions in Chinese electric cars, which have quickly gained market share. Janka Oertel, director of the Asia program at the European Council on Foreign Relations, wrote on the council’s website that the control of data flows and software updates in vehicles raises important questions related to national security, cybersecurity, and individual privacy.
Today, vehicles are not just means of transportation, but rather “mobility platforms” that collect data on driver and passenger behavior and track their surroundings. A senior administration official stated that it is evident from the terms of service contracts that data from vehicles ends up in China.
Raimondo stressed that the U.S. cannot afford to wait until Chinese and Russian cars become commonplace on American roads. “We’re issuing a proposed rule to address these new national security threats before suppliers, automakers, and car components linked to China or Russia become widespread in the U.S. automotive sector,” she said.
It is challenging to predict when China could reach a level of saturation in the U.S. market, as stated by a senior administration official. However, the Commerce Department has stated that China has expressed interest in entering the U.S. market, and several Chinese companies have already announced plans to enter the automotive software space. As a result, the proposed rule also includes a ban on vehicles made in the U.S. using Chinese and Russian technology.
The new rule would prohibit the import and sale of vehicles equipped with Chinese and Russian software and hardware that allow the vehicle to communicate externally through Bluetooth, cellular, satellite, or Wi-Fi modules. It would also prohibit the sale or import of software components made in Russia or the People’s Republic of China that allow a highly autonomous vehicle to operate without a driver behind the wheel. However, the ban would not apply to vehicles not used on public roads, such as agricultural or mining vehicles.
While U.S. automakers support the government’s national security goal, they have stated that there is currently little connected vehicle hardware or software coming to the U.S. supply chain from China. Nevertheless, the Alliance for Automotive Innovation, a large industry group, has expressed concerns that the new rules will require some automakers to find new parts suppliers, which cannot be done overnight. John Bozzella, CEO of the alliance, stated in a press release that the lead time provided in the new rules may be enough for some automakers to make the necessary changes, but it may be too short for others.
The Commerce Department has consulted with major auto companies and industry associations while drafting the proposed rule to better understand supply chain networks. The agency is also inviting public comments, which will be accepted for 30 days after the publication of the rule before it becomes finalized. The goal is to have the rule in place before the end of the Biden Administration.
This new proposed rule follows recent efforts by the Biden administration to crack down on cheap products sold by China, including electric vehicles. This move is part of a broader strategy to reduce
