Biden administration finalizes ban on Chinese, Russian tech in passenger cars

Jan 15

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Lauren Taylor Anchor

By Lauren Taylor (Anchor), Jodie Hawkins (Senior Producer), Zachary Hill (Video Editor)

President Joe Biden’s outgoing administration finalized rules Tuesday, Jan. 14 to ban the sale and import of Chinese and Russian tech in connected passenger vehicles. The move is Biden’s last push to address national security concerns tied to the auto industry.

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The Commerce Department said the systems from those foreign adversaries pose unacceptably high risks and open the door to spying or interference.

The features include components that connect vehicles to the outside world, including Wi-Fi and Bluetooth, as well as self-driving systems. The software bans start with 2027 model year cars, while for hardware, it begins with 2030 model year cars.

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General Motors and Ford build some vehicles in China, including the Buick Envision and the Lincoln Nautilus, which will be impacted by the new ruling.

Volvo also makes the S90 sedan in China, as well as sister brand Polestar with the Polestar 2 EV sedan.

The Alliance for Automotive Innovation trade group, which represents several automakers, said the new rules are fair and acknowledged the risks of foreign tech.

The group’s CEO, John Bozzella, also said the timing of the rules going into effect a few years from now strikes a good balance because changing the “world’s most complex supply chain can’t happen overnight.”

The rule not only applies to the import and sale of Russian and Chinese-made cars but also to any cars that have Russian or Chinese technology in them, even if the cars are assembled or manufactured in the U.S.

The Commerce Department said it plans to create another rule for large vehicles like buses and trucks in the future, but it’s not clear exactly when that will happen.

The new rule comes as President Biden also signed an executive order to fast-track the development of artificial intelligence infrastructure, paving the way to lease federal land for companies that agree to build AI data centers. This goes along with new trade restrictions to curb the sale of AI chips from Nvidia and other data centers around the world.

While the incoming Trump administration could reverse some of Biden’s latest steps, Trump could keep some of the policies involving China, given there’s wide bipartisan agreement on national security risks.

Tags: Artificial Intelligence, Auto industry, Automakers, Automation, cars, Commerce Department, Donald Trump, Driverless Cars, Ford, General Motors, Joe Biden, Volvo

[Lauren Taylor]

PRESIDENT JOE BIDEN’S OUTGOING ADMINISTRATION FINALIZED RULES TUESDAY TO BAN THE SALE AND IMPORT OF CHINESE AND RUSSIAN TECH IN CONNECTED PASSENGER VEHICLES.

THE MOVE IS BIDEN’S LAST PUSH TO ADDRESS NATIONAL SECURITY CONCERNS TIED TO THE AUTO INDUSTRY.

THE COMMERCE DEPARTMENT SAYS THE SYSTEMS FROM THOSE FOREIGN ADVERSARIES POSE UNACCEPTABLY HIGH RISKS … OPENING THE DOOR TO SPYING OR INTERFERENCE.

THE FEATURES INCLUDE COMPONENTS THAT CONNECT VEHICLES TO THE OUTSIDE WORLD – INCLUDING WI-FI AND BLUETOOTH … AS WELL AS SELF-DRIVING SYSTEMS.

THE SOFTWARE BANS START WITH 20-27 MODEL YEAR CARS, WHILE FOR HARDWARE, IT BEGINS WITH 20-30 MODEL YEAR CARS.

G-M AND FORD BUILD SOME VEHICLES IN CHINA, INCLUDING THE BUICK ENVISION AND THE LINCOLN NAUTILUS, WHICH WILL BE IMPACTED BY THE NEW RULES.

VOLVO ALSO MAKES THE S-90 SEDAN IN CHINA, AS WELL AS SISTER BRAND POLESTAR WITH THE “POLESTAR 2” E-V SEDAN.

THE ALLIANCE FOR AUTOMOTIVE INNOVATION TRADE GROUP, WHICH REPRESENTS SEVERAL AUTO MAKERS SAYS THE NEW RULES ARE FAIR … ACKNOWLEDGING THE RISKS OF FOREIGN TECH.

THE GROUP’S C-E-O ALSO SAYS THE TIMING OF THE RULES GOING INTO EFFECT A FEW YEARS FROM NOW … STRIKE A GOOD BALANCE BECAUSE CHANGING THE “WORLD’S MOST COMPLEX SUPPLY CHAIN CAN’T HAPPEN OVERNIGHT.”

THE RULE NOT ONLY APPLIES TO THE IMPORT AND SALE OF RUSSIAN AND CHINESE-MADE CARS BUT ALSO TO ANY CARS THAT HAVE RUSSIAN OR CHINESE TECHNOLOGY IN THEM – EVEN IF THE CARS ARE ASSEMBLED OR MANUFACTURED IN THE U-S.

THE COMMERCE DEPARTMENT SAYS IT PLANS TO CREATE ANOTHER RULE FOR LARGE VEHICLES LIKE BUSES AND TRUCKS IN THE FUTURE, BUT IT’S NOT CLEAR EXACTLY WHEN THAT WILL HAPPEN.

THE NEW RULE COMES AS PRESIDENT BIDEN ALSO SIGNED AN EXECUTIVE ORDER TO FAST-TRACK THE DEVELOPMENT OF A-I INFRASTRUCTURE PAVING THE WAY TO LEASE FEDERAL LAND FOR COMPANIES THAT AGREE TO BUILD A-I DATA CENTERS … WHICH GOES ALONG WITH NEW TRADE RESTRICTIONS TO CURB THE SALE OF A-I CHIPS FROM NVIDIA AND OTHER DATA CENTERS AROUND THE WORLD.

WHILE THE INCOMING TRUMP ADMINISTRATION COULD REVERSE SOME OF BIDEN’S LATEST STEPS, TRUMP COULD KEEP SOME OF THE POLICIES INVOLVING CHINA GIVEN THERE’S WIDE BI-PARTISAN AGREEMENT ON NATIONAL SECURITY RISKS.

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