Biden Administration Wants to Ban Chinese, Russian Smart Car Tech

The US plans to prohibit the use of Chinese and Russian-made software and hardware in connected cars, citing concerns that foreign adversaries could use the components to collect data on Americans and hack vehicles.

The proposed regulations, first reported by Reuters Monday, would ban the import or use of software from the designated countries beginning with 2027 model vehicles while similar restrictions on hardware for connected vehicles would begin with model year 2030.

In recent years, cars have become increasingly dependent on onboard computers and loaded with features that require internet connections, making them privacy and security nightmares.

The Commerce Department’s proposed rules specifically prohibit the import or sale of autonomous driving systems and vehicle connectivity systems, which allow cars to connect to the internet or other networks via Wi-Fi, Bluetooth, cellular systems, or satellite.

“Certain hardware and software in connected vehicles enable the capture of information about geographic areas or critical infrastructure, and present opportunities for malicious actors to disrupt the operations of infrastructure or the vehicles themselves,” the White House said in a statement. “(The Commerce Department) has determined that certain technologies used in connected vehicles from the (People’s Republic of China) and Russia present particularly acute threats. These countries of concern could use critical technologies within our supply chains for surveillance and sabotage to undermine national security.”

The Alliance for Automotive Innovation, an industry group representing car manufacturers, said that connected cars in America contain “very little technology” from China but some automakers would struggle to meet the Commerce Department’s proposed timeline for phasing those components out.

“You can’t just flip a switch and change the world’s most complex supply chain overnight,” John Bozzella, CEO of the alliance, said in a statement, adding “The lead time included in the proposed rule will allow some automanufacturers to make the required transition but may be too short for others.”

This is the second major trade regulation the White House has announced in the past few months aimed at curbing China’s grasp on the American auto market. In May, the Biden administration announced it was raising the tariff rate from 25% to 100% on electric vehicles imported from China and increased tariffs on batteries and battery components used in electric vehicles from 7.5% to 25%.

Chinese car companies have increasingly threatened America’s dominance in the industry. Last year, global sales by Chinese automakers exceeded those of US manufacturers for the first time by a margin of 13.4 million sales to 11.9 million sales, according to an analysis by the research companies Jato Dynamics.