US expected to propose ban on Chinese software in self-driving vehicles

The US is expected to propose a ban on Chinese software in autonomous and connected vehicles. Photo: pexels

3 minutes of reading Last updated: August 5, 2024 | 8:45 AM IST

The U.S. Commerce Department is likely to propose a ban on Chinese software in connected and autonomous vehicles in the coming weeks, according to sources familiar with the matter.

The Biden administration plans to issue a draft regulation that would ban the use of Chinese software in vehicles in the United States with Level 3 automation or higher, which would also result in a ban on testing autonomous vehicles made by Chinese companies on U.S. roads.

The administration, in an undisclosed decision, also plans to propose banning vehicles equipped with advanced Chinese wireless communication modules from driving on U.S. roads, the sources added.

Under the proposal, automakers and suppliers would have to verify that none of their software for connected vehicles or advanced autonomous vehicles was developed in a “foreign entity of concern” such as China, the sources said.

The Commerce Department said last month it plans to release proposed rules on connected vehicles in August and expects to impose restrictions on some software produced in China and other countries it deems hostile.

Asked for comment, a Commerce Department spokesman said Sunday that the department “is concerned about the national security risks associated with connected technologies in connected vehicles.”

The department’s Bureau of Industry and Security will issue a proposed rule that “will focus on specific systems of concern in a vehicle. The industry will also have an opportunity to review the proposed rule and submit comments.” The Chinese embassy in Washington had no immediate comment, but China’s foreign ministry has previously urged the United States “to respect the laws of the market economy and the principles of fair competition.” It says Chinese cars are popular around the world because they emerged from fierce market competition and are technologically innovative.

On Wednesday, the White House and State Department held a meeting with allies and industry leaders to “collaboratively address national security issues related to connected vehicles,” the department said. The sources said officials disclosed details of the administration’s planned rule.

The meeting was attended by officials from the United States, Australia, Canada, the European Union, Germany, India, Japan, the Republic of Korea, Spain, and the United Kingdom, who “exchanged views on data and cybersecurity risks associated with connected vehicles and certain components.” Level 3, also known as conditional driving automation, involves technology that allows drivers to perform activities behind the wheel, such as watching videos or using smartphones, but only under certain limited conditions.

In November, a group of U.S. lawmakers raised the alarm about Chinese companies collecting and processing sensitive data during autonomous vehicle testing in the United States and questioned 10 major companies, including Baidu, Nio, WeRide, Didi Chuxing, Xpeng, Inceptio,

These include: Pony.ai, AutoX, Deeproute.ai, and Qcraft.

The letters say that Chinese self-driving companies conducted more than 450,000 miles of testing in California in the 12 months ending in November 2022. In July 2023, Transportation Secretary Pete Buttigieg said his department had national security concerns about Chinese companies making self-driving vehicles in the United States.

The administration is concerned that connected vehicles could use the driver monitoring system to eavesdrop on or record passengers or even take control of the vehicle.

“The national security risk is quite significant,” Commerce Secretary Gina Raimondo said in May. “We decided to take action because this is a really serious matter.”

(Only the headline and image of the report may have been edited by the Business Standard team; the rest of the content is automatically generated from a syndicated feed.)

First published: August 5, 2024 | 8:45 AM IST