The U.S. Commerce Department is considering a ban on Chinese software and hardware in connected vehicles on American roads, citing the risk they pose to national security. This move would effectively bar nearly all Chinese cars from entering the U.S. Market.
The proposed regulation, which was first reported by Reuters, would force American and other major automakers in the coming years to remove key Chinese software and hardware from vehicles in the United States.
The Biden administration has expressed serious concerns regarding Chinese companies gathering data on U.S. drivers and infrastructure through connected vehicles, as well as the potential for foreign interference with internet-connected vehicles and navigation systems. In February, the White House had proposed an investigation into these possible risks.
These restrictions would prevent Chinese automakers from testing self-driving cars on U.S. roads and would also apply to vehicle software and hardware produced by other foreign adversaries of the U.S., including countries like Russia.
The move marks a significant escalation in the United States’ ongoing restrictions on Chinese vehicles, software, and components. Earlier this month, the Biden administration had imposed substantial tariffs on Chinese goods, including a 100 percent duty on electric vehicles as well as new hikes on EV batteries and key minerals.
The number of Chinese-made cars or light-duty trucks imported into the United States is relatively low.
The majority of contemporary automobiles and light trucks are equipped with internet connectivity, facilitating data exchange with both internal and external devices.
A high-ranking U.S. government official stated that the proposed policy would ban all current Chinese-made passenger vehicles and light trucks from the American market. The official further added that Chinese auto manufacturers would have the opportunity to apply for individual waivers from the ban.
