US may effectively ban Chinese-made vehicles over national security concerns

The U.S. government may soon effectively prohibit the entry of Chinese-made vehicles as part of a new proposal aimed at addressing national security concerns. On Monday, Sept. 23, the Biden administration announced that it is considering new regulations that would restrict the use of certain Chinese technology in vehicles operating on American roads.

“Chinese automakers are seeking to dominate connected vehicle technologies in the United States and globally, posing new threats to our national security, including through our supply chains,” the White House said in a statement regarding the move. “The Biden-Harris administration is committed to ensuring that our automotive supply chains are resilient and secure from foreign threats.”

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This proposal by the U.S. Commerce Department focuses on banning the use of key Chinese software and hardware in “connected” vehicles. Connected vehicles are those equipped with network hardware enabling internet access as well as data-sharing capabilities with devices both inside and outside the car. The new rule would extend to similar technology from other foreign adversaries, including Russia. Officials cited the potential for foreign countries to use these systems for espionage or sabotage.

“When foreign adversaries build software to make a vehicle that means it can be used for surveillance, can be remotely controlled, which threatens the privacy and safety of Americans on the road,” Commerce Secretary Gina Raimondo said. “In an extreme situation, a foreign adversary could shut down or take control of all their vehicles operating in the United States all at the same time.”

According to the government, this connected technology could allow foreign entities to monitor U.S. drivers or disrupt vehicle systems, potentially leading to accidents or the blocking of roadways. White House National Security Advisor Jake Sullivan stated that the more vehicles utilizing these technologies are deployed in the U.S., the higher the risk of malicious interference.

“Connected vehicles and the technology they use bring new vulnerabilities and threats, especially in the case of vehicles or components developed in the P.R.C. and other countries of concern,” Sullivan said. “With potentially millions of vehicles on the road, each with 10- to 15-year lifespans the risk of disruption and sabotage increases dramatically.”

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The proposed ban would require automakers to phase out the use of these technologies in the coming years. For software-related components, the restrictions would take effect beginning with vehicles from the 2027 model year, while hardware bans would apply starting in 2029. The Commerce Department is offering a 30-day public comment period on the proposed rule before the Commerce Department plans to finalize the regulation by January 20th, 2025.