Due to concerns about national security, the US Commerce Department is expected to make a proposal on Monday ( Sep 23 ) to prohibit Chinese software and hardware in connected and autonomous vehicles on American roads, according to two sources.
The Biden administration has raised major concerns about the potential for international manipulation of cars connected to the internet and tracking systems as well as the collection of data by Chinese firms on US vehicles and equipment.  ,
The two resources, who declined to be identified because the choice had not been made formally, claimed that the proposed regulation may prohibit the transfer and purchase of vehicles from China equipped with essential communications or automatic driving systems software or hardware.
The shift is a significant increase in the US’s continued restrictions on Chinese vehicles, application, and components. The Biden administration announced significant tax increases on Chinese imports last year, including new increases on EV chargers and essential nutrients as well as a 100 % work on electric vehicles.
In connection with related US vehicles, Commerce Secretary Gina Raimondo noted that there were significant risks associated with Chinese software or hardware in May.
If there were a few million vehicles on the road and the application was disabled, she said,” the most fatal result would theoretically be.
In February, President Joe Biden ordered an investigation into whether connected-car technology imports from China pose a threat to national security and whether all of those components may be prohibited from being installed in US roads.
” China’s policies may storm our market with its vehicles, posing threats to our federal security”, Biden said before. ” I’m not going to let that happen on my watch”.
According to the options, the Commerce Department intends to provide the consumer with 30 days to leave comments before the rules are final. Nearly all of the more recent vehicles that are” connected” on US roads. These vehicles have onboard community equipment that enables internet entry, allowing them to share data with both inside and outside of the vehicle.
The department also intends to make the proposed changes to the software restrictions successful in the 2027 model year and the technology prohibitions successful in January 2029 or the 2030 model year. Vehicles that have Bluetooth, satellite, and wireless capabilities as well as highly autonomous vehicles that can operate without a driver behind the wheel would be exempt from the prohibitions in question.
In November, a bipartisan group of US lawmakers voiced concern about Chinese auto and tech companies ‘ collection and use of sensitive information while conducting American autonomous vehicle testing.
The prohibitions would extend to other foreign US adversaries, including Russia, the sources said.
A trade group representing major automakers, including General Motors, Toyota, Volkswagen, Hyundai, and others, had warned that it would take time to switch hardware and software.
The carmakers noted their systems “undergo extensive pre-production engineering, testing, and validation processes and, in general, cannot be easily swapped with systems or components from a different supplier”.
On Saturday, the Commerce Department made no comment. Early in August, Reuters first reported details of a proposal that would prevent Chinese automakers from testing autonomous vehicles on US roads. There are relatively few Chinese-made light-duty vehicles imported into the United States.
According to a government website, the White House approved the final proposal on Thursday. The rule aims to make sure that US-connected vehicles ‘ supply chains are secure. It will apply to all vehicles on US roads, but not for agriculture or mining vehicles, the sources said.
Biden noted that the majority of cars are connected to phones, navigation systems, critical infrastructure, and the manufacturers themselves like smartphones on wheels.