US to propose ban on Chinese software in advanced autonomous vehicles

The U.S. Commerce Department is preparing to propose a ban on Chinese software in autonomous and connected vehicles. According to sources familiar with the matter, this initiative is expected to be announced in the coming weeks, marking a substantial shift in U.S. policy towards automotive technology.

The proposed rule, part of the Biden administration's efforts to address national security concerns, would specifically target vehicles with Level 3 automation and above. Level 3 automation, also known as conditional driving automation, allows drivers to engage in non-driving activities under certain conditions, such as watching movies or using smartphones, while the vehicle handles most driving tasks.

The scope of the ban extends beyond just prohibiting Chinese software in U.S. vehicles. It would also effectively prevent Chinese companies from testing their autonomous vehicles on American roads. Additionally, the proposal is expected to bar vehicles equipped with Chinese-developed advanced wireless communications modules from operating in the United States.

Under the proposed regulations, automakers and suppliers would be required to verify that none of their connected vehicle or advanced autonomous vehicle software was developed by a "foreign entity of concern," with China being a primary focus. This move reflects growing apprehension about the potential national security risks associated with connected technologies in vehicles.

The Commerce Department has previously indicated its intention to issue proposed rules on connected vehicles, with an expected focus on imposing limits on software originating from China and other countries deemed adversaries. A spokesperson for the department stated that they are "concerned about the national security risks associated with connected technologies in connected vehicles."

The proposed rule is set to be issued by the Bureau of Industry and Security, a division of the Commerce Department. Industry stakeholders will have the opportunity to review the proposal and submit comments before any final decisions are made.

This development comes in the wake of increasing scrutiny of Chinese automotive companies operating in the United States. In November, a group of U.S. lawmakers raised concerns about Chinese firms collecting and handling sensitive data while testing autonomous vehicles on American soil. They sought information from ten major companies, including Baidu, Nio, and Xpeng, regarding their data practices.

The administration's concerns extend to the potential misuse of connected vehicle technologies, such as driver monitoring systems being used to eavesdrop on or record occupants' conversations, or even to take control of the vehicle remotely.

Commerce Secretary Gina Raimondo emphasised the gravity of the situation, stating, "The national security risks are quite significant. We decided to take action because this is really serious stuff."

In response to these developments, a spokesperson for the Chinese Embassy in Washington urged the U.S. to adhere to market principles and international trade rules, emphasising that the electric vehicle industry is globalised and benefits from international cooperation and fair competition.

The proposed rule is likely to have far-reaching implications for the automotive industry, potentially reshaping supply chains and technological partnerships. It also underscores the growing intersection of national security concerns with emerging technologies in the transportation sector.