US to propose ban on Chinese software, hardware in connected vehicles, sources say

WASHINGTON (Reuters) – The U.S. Commerce Department is expected on Monday to propose a ban on Chinese software and hardware used in connected and autonomous vehicles on U.S. roads due to national security concerns, sources told Reuters.

The Biden administration has raised serious concerns about Chinese companies collecting data on American drivers and infrastructure, as well as potential foreign manipulation of connected vehicles. The proposed regulation would ban the import and sale of vehicles from China with key communications or automated driving software or hardware.

The department plans to give the public 30 days to comment before any finalization of the rule, the sources said, adding that the department plans to propose software bans in the 2027 model year, while hardware bans would take effect in January 2029. The Commerce Department declined to comment Saturday.

(Reporting by David Shepardson; Editing by Paul Simao)