The US Commerce Department is set to propose a ban on the sale or import of smart vehicles that utilize certain Chinese or Russian technology, citing national security concerns. According to US officials, an investigation initiated in February revealed a range of national security risks stemming from embedded software and hardware from China and Russia in US vehicles. These risks include the potential for remote sabotage through hacking and the collection of personal driver data.
Commerce Secretary Gina Raimondo highlighted the severity of these risks during a conference call with reporters, stating, “In extreme situations, a foreign adversary could shut down or take control of all their vehicles operating in the United States, all at the same time, causing crashes (or) blocking roads.” The proposed rule would not affect vehicles already on US roads with Chinese software installed, as clarified by a senior administration official.
The software ban is slated to take effect for vehicles in model year 2027, while the hardware ban is set for model year 2030, according to the Commerce Department. This move is part of a broader struggle between the US and China to secure supply chains for key computing technologies, including semiconductors and AI software.
The proposed regulation targets “connected vehicles,” a term encompassing modern cars, buses, and trucks that use network connections for various features. It covers hardware and software interacting with technologies like Bluetooth, WiFi, and cellular connectivity. A 30-day public comment period will follow the proposal’s release, with the Commerce Department aiming to finalize the regulation before the end of the Biden administration.
Raimondo emphasized that the announcement was not a protectionist measure, stating, “This is not about trade or economic advantage; this is a strictly national security action.” Concerns were also raised about the potential exploitation of electric charging stations and other infrastructure by hackers with ties to foreign powers.
The Chinese government has denied allegations of embedding malware in US infrastructure and criticized the US for “broadening the concept of national security” and taking “discriminatory actions” against Chinese companies.
This move aligns with previous actions by the Commerce Department to shield US consumers from foreign-made software deemed a national security threat. In June, the department banned certain products and services from Russian cybersecurity firm Kaspersky Lab.
The proposal is part of a broader initiative to support American autoworkers, particularly in Michigan, a crucial battleground state. The White House announced $1 billion in financing for small- and medium-sized auto suppliers and other initiatives aimed at unionized auto workers in the Midwest.
