US moves to ban Chinese tech in smart vehicles

The US Commerce Department is set to introduce a new regulation to ban Chinese software and hardware in autonomous and connected vehicles in the country, citing national security concerns. The proposal, expected to be announced soon, reflects growing worries from the Biden administration about the potential risks posed by Chinese companies collecting sensitive data on US drivers and infrastructure. Additionally, there are fears that foreign actors could manipulate connected vehicles, potentially creating significant security threats.

The proposed restrictions would apply to Chinese-made vehicles with communication or autonomous driving systems, escalating trade tensions between the US and China. The proposal follows last week’s move by the Biden administration to impose steep tariffs on Chinese imports, including electric vehicles and key components like batteries. Commerce Secretary Gina Raimondo has been vocal about the potential dangers of Chinese technology in US vehicles, stressing the catastrophic risks if critical software were turned off in large numbers of cars.

President Joe Biden had already initiated a review of whether Chinese vehicle imports posed security threats due to their integration with connected-car technology. The new rules could come into effect gradually, with software restrictions starting as early as the 2027 model year and hardware prohibitions beginning in 2029 or 2030. These measures would cover vehicles equipped with specific Bluetooth, satellite, wireless features and fully autonomous cars capable of operating without drivers.

Why does this matter?

US lawmakers have raised concerns about Chinese companies gathering sensitive data, and the proposed restrictions would also extend to other foreign adversaries like Russia. However, automakers, including major companies like General Motors and Toyota, have expressed worries about the time and complexity required to replace existing systems, noting that vehicle components undergo extensive testing and cannot easily be swapped.

Although Chinese-made vehicles currently make up a small fraction of US imports, the new rule aims to ensure the long-term security of connected cars on US roads. The White House recently approved the final proposal, which would not apply to specialised vehicles like those used in agriculture or mining but will impact all other sectors. The move seems a clear effort to protect the US supply chain in an increasingly connected world where cars function as ‘smartphones on wheels.’