The US Commerce Department is moving to ban connected vehicle technology and vehicles incorporating it from Chinese and Russian sources, driven by growing national security concerns.
In a recent announcement, the Bureau of Industry and Security (BIS) proposed a rule prohibiting the import and sale of vehicle connectivity systems (VCS) and automated driving systems (ADS) hardware or software from manufacturers “with a nexus to [China] or Russia.” The proposed rule would also restrict the integration of Chinese or Russian VCS or ADS technology in vehicles produced within the US.
If enacted, the rule would effectively prevent vehicles equipped with Chinese automotive technology from operating on US roads, even for testing purposes, according to the proposal. This action follows an earlier directive from the Biden administration, issued in February, instructing the Commerce Department to investigate the potential security risks posed by connected vehicle technology.
President Biden stated earlier this year, “China imposes restrictions on American autos and other foreign autos operating in China. Why should connected vehicles from China be allowed to operate in our country without safeguards?”
The Commerce Department’s investigation, as cited by the White House, has since revealed the potential for connected vehicle technology to become a tool for foreign adversaries. China and Russia are specifically identified as “particularly acute threats.”
“These technologies include computer systems that control vehicle movement and collect sensitive driver and passenger data as well as cameras and sensors that enable automated driving systems and record detailed information about American infrastructure,” according to a White House statement. “Now more than ever, vehicles are directly connected into our country’s digital networks.”
The administration’s rationale is that foreign companies in countries like China and Russia, where governments can “compel companies subject to their jurisdiction … to cooperate with security and intelligence services,” could pose a significant security risk.
Commerce Secretary Gina Raimondo emphasized the risks, stating, “It doesn’t take much imagination to understand how a foreign adversary with access to this information could pose a serious risk to both our national security and the privacy of US citizens. To address these national security concerns, the Commerce Department is taking targeted, proactive steps to keep PRC and Russian-manufactured technologies off American roads.”
Since the proposal is still under review, it may undergo changes before its implementation. The software provisions are slated to apply to vehicles beginning with the 2027 model year, while hardware restrictions would commence with model year 2030. Units without a specific model year would be affected starting in January 2029.
It is important to note that, currently, there are no Chinese-branded vehicles sold in the U.S., making this ban a preemptive measure. However, several US automakers manufacture vehicles in China for sale within the US market. While the Commerce Department has not yet clarified how these vehicles will be affected, the proposed rules include a provision allowing manufacturers to apply for an exemption.
In addition to the proposed ban on connected vehicle technology, the Biden Administration raised tariffs on Chinese-manufactured electric vehicles from 25 percent to 100 percent in May, a move that has already prompted promises of retaliation from China.
