Biden administration proposes ban on Chinese 'connected car' technology

The Biden administration has proposed a ban on key Chinese software and hardware in connected vehicles on American roads. The U.S. Commerce Department announced this proposal on Monday, citing national security concerns as the primary motivation behind the decision.

According to media reports, the planned regulation would effectively bar Chinese cars and trucks from entering the U.S. market. Moreover, it would require American and other major automakers to remove essential Chinese software and hardware components from vehicles sold in the United States in the coming years.

Commerce Secretary Gina Raimondo emphasised the potential risks associated with foreign-made connected vehicle technology. "When foreign adversaries build software to make a vehicle, it means it can be used for surveillance and can be remotely controlled, which threatens the privacy and safety of Americans on the road," Raimondo stated. She further warned of an extreme scenario where a foreign adversary could potentially shut down or take control of all their vehicles operating in the United States simultaneously, causing crashes and blocking roads.

The proposal outlines a timeline for implementation, with software prohibitions set to take effect in the 2027 model year, while hardware bans would commence in the 2030 model year or January 2029. The Commerce Department has opened a 30-day public comment period on the proposal and aims to finalise the rules by January 20.

While the ban primarily targets Chinese technology, it could also extend to vehicle software and hardware produced by Russia and potentially other U.S. adversaries. The scope of the regulation covers all on-road vehicles but excludes agricultural or mining vehicles not used on public roads, as well as drones and trains.

This move represents a significant escalation in U.S. restrictions on Chinese vehicles, software, and components. It follows recent actions by the Biden administration to lock in steep tariff hikes on Chinese imports, including a 100% duty on electric vehicles and increases on EV batteries and key minerals.

National Security Adviser Jake Sullivan highlighted the urgency of the matter, stating that the U.S. has ample evidence of China prepositioning malware in critical American infrastructure. "With potentially millions of vehicles on the road, each with 10- to 15-year lifespans, the risk of disruption and sabotage increases dramatically," Sullivan explained.

The proposed ban would have far-reaching implications for the automotive industry. Liz Cannon, head of the Commerce Department's information and communications technology office, noted that the regulation would force major American automakers like General Motors and Ford Motor to cease selling vehicles imported from China in the U.S.

While there are currently relatively few Chinese-made cars or light-duty trucks imported into the U.S., the Commerce Department is taking preemptive action. Raimondo emphasised, "We're not going to wait until our roads are filled with cars and the risk is extremely significant."

The Alliance For Automotive Innovation, a group representing major automakers including GM, Toyota, Volkswagen, and Hyundai, has responded to the proposal, suggesting that some automakers may need more time to comply. The group noted that while there is "very little" connected vehicle hardware or software entering the U.S. from China, the rule will require auto manufacturers to find alternate suppliers in some cases.

In response to the proposed ban, Chinese Foreign Ministry Spokesperson Lin Jian urged Washington "to respect market principles and provide Chinese companies with an open, fair, transparent, and non-discriminatory business environment." Lin added that China would firmly safeguard its legitimate rights and interests.