US Tightens Grip on Automotive Tech, Targeting Chinese Components
Washington, D.C. – The US government is moving forward with plans to prohibit the use of Chinese technology in new cars sold within the United States, citing potential risks to national security. This initiative targets both autonomous vehicles and those capable of connecting via satellite or mobile networks.
Details of the US Commerce Department’s proposed measures have recently emerged. Software restrictions could begin as early as 2026, followed by a larger ban on Chinese hardware, including semiconductors and control units, slated for 2029. The primary concern revolves around the potential for data sharing with overseas entities and the possibility of remote vehicle control or system shutdowns.
While these measures might be less common in the new-car market, similar restrictions could extend to hardware and software originating from Russia.
“China’s policies could flood our market with its vehicles, posing risks to our national security,” said US President Joe Biden earlier this year.
Experts suggest that the ban could significantly impact Chinese car companies’ plans to manufacture vehicles in Mexico using Chinese components and software to avoid import tariffs on electric vehicles. However, some experts maintain that the need for alternative suppliers will not present major issues.
The Australian government is also monitoring the situation. Australia’s Department of Home Affairs has been communicating with the US Government over the plan. However, it has not confirmed whether the Australian Government is considering similar prohibitions.
This move follows a trend of increasing trade tensions. The US government previously implemented a 100 percent tariff on electric vehicles from China, as well as tariffs on semiconductors, solar cells, electric-car batteries, steel, and aluminum.
These actions are rooted partly in earlier warnings. In August 2024, the US government raised concerns about national security risks from Chinese-developed autonomous cars while providing room for US car manufacturers to continue building and selling Chinese-made vehicles.
A UK motoring organization’s leader had previously claimed there were “major security issues” with Chinese-made electric cars. They called them “trojan horses” that could be remotely disabled. While these claims were initially downplayed, a recent incident involving a Tesla Cybertruck remotely disabled on a battlefield in Ukraine has added fuel to fire.
US Commerce Secretary Gina Raimondo, in May 2024, emphasized the potential security threat: “You can imagine the most catastrophic outcome theoretically if you had a couple million cars on the road and the software were disabled.”
