In a strategic move to enhance national security, the Biden administration has proposed banning Chinese-manufactured vehicles from US roads.
At a Glance
- The U.S. Commerce Department is expected to propose a ban on Chinese software and hardware in connected and autonomous vehicles.
- The Biden administration is concerned about data collection by Chinese companies on U.S. drivers and infrastructure.
- The proposed regulation bans the import and sale of vehicles with key communications or automated driving system software from China.
- This move is part of ongoing U.S. restrictions on Chinese vehicles, software, and components.
- The prohibitions will take effect in the 2027 model year for software and in January 2029 for hardware.
National Security Concerns Drive the Proposal
The U.S. Commerce Department is expected to propose sweeping new rules that would ban Chinese software and hardware in connected and autonomous vehicles within the U.S. due to national security concerns. The aim is to protect sensitive data that could be exploited by Chinese entities through Vehicle Connectivity Systems (VCS) and Automated Driving Systems (ADS). The rules are part of a broader initiative to minimize technological threats from nations like China and Russia.
The Biden administration has been increasingly worried about the amount of data Chinese companies can collect on U.S. drivers and infrastructure. There is a specific focus on preventing potential foreign manipulation of connected vehicles. The proposed regulations will also ban the import and sale of vehicles from China that use key communications or ADS software or hardware.
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Proposed phased-in regulations would… pic.twitter.com/hboEVAZ97F
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Implementation Timeline and Tariffs
The proposed prohibitions would come into effect starting with the 2027 model year for software and in January 2029 for hardware. Recently, the Biden administration has also imposed steep tariff hikes on Chinese imports, including a 100% duty on electric vehicles and new tariffs on EV batteries and key minerals. These measures further aim to safeguard the supply chain and national security.
“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.”
Commerce Secretary Gina Raimondo emphasized the severe risks associated with Chinese software or hardware in connected U.S. vehicles. “Connected cars are like smart phones on wheels,” she noted, stressing the potential espionage and cyber risks these vehicles could pose.
Broadening the Ban Beyond China
The prohibitions would extend to other adversarial nations, including Russia. The Commerce Department will allow a 30-day public comment period before finalizing the rules, which will apply to all vehicles on U.S. roads except for those used in agriculture or mining.
“These vehicles are connected to the internet. They collect huge amounts of sensitive data on the drivers — personal information, biometric information, where the car goes,” Raimondo remarked. “So it doesn’t take a lot of imagination to figure out how a foreign adversary like China could pose a serious risk to our national security.”
Biden emphasized that while most cars are like smartphones linked to critical infrastructure and navigation systems, it’s crucial to safeguard this data from adversarial nations. Major automakers, however, have warned that changing hardware and software would take time due to extensive pre-production processes needed for such components.
