Biden proposes banning Chinese vehicles by software ban

National Security Concerns Prompt Ban on Chinese Automotive Software and Hardware

The U.S. Commerce Department has proposed a regulation that would prohibit key Chinese software and hardware from being used in connected vehicles on American roads, citing national security concerns. This move effectively bars nearly all Chinese cars from entering the U.S. market. The regulation would also require American and other major automakers to remove key Chinese components from vehicles operating in the United States.

Data Collection and Foreign Manipulation Concerns

The Biden administration has expressed concerns about Chinese companies collecting data on U.S. drivers and infrastructure through connected vehicles. Additionally, there are fears that foreign adversaries could potentially manipulate vehicles connected to the internet and navigation systems, posing a threat to public safety.

Expansion of Chinese Vehicle Restrictions

The proposed ban on Chinese automotive software and hardware represents a significant escalation in the United States’ ongoing restrictions on Chinese vehicles, software, and components. Earlier this month, the Biden administration implemented steep tariff hikes on Chinese imports, including a 100% duty on electric vehicles and new hikes on EV batteries and key minerals.

Preemptive Action to Mitigate Risks

Despite the limited number of Chinese-made vehicles imported into the United States, the Commerce Department is taking preemptive action to prevent the proliferation of Chinese-linked components in the U.S. automotive sector. Commerce Secretary Gina Raimondo emphasized the need to act before these components become widespread and pose a significant risk to national security.

Phased Implementation and Timeframe

The proposal calls for making software prohibitions effective in the 2027 model year, while the hardware ban would take effect in the 2030 model year or January 2029. The Commerce Department is seeking public comments on the proposal and aims to finalize it by January 20. The restrictions would apply to all on-road vehicles, excluding agricultural or mining vehicles not used on public roads.

Industry Concerns and Calls for Collaboration

The Alliance For Automotive Innovation, representing major automakers, has raised concerns about the time required to replace Chinese hardware and software. The group has also highlighted the global nature of connected vehicle development, which includes components from China. However, the Alliance has urged Chinese automakers to engage with U.S. regulators to seek exemptions and mitigate concerns.

China’s Response

The Chinese Embassy in Washington has criticized the planned action to limit Chinese vehicle exports to the United States, urging the U.S. to uphold market principles and international trade rules. China has expressed its intention to protect its lawful rights and interests in response to these restrictions.