US to ban Chinese connected and self-driving vehicles
The US government is looking to ban connected and self-driving vehicles made in China in a major escalation of the trade war.
The potential restrictions cover both hardware and software for connected vehicles and autonomous driving fro vehicles from China and Russia. This would come into force vehicles shipping in 2027 for software and 2030 for hardware and would hit software defined vehicles developed in China.
“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,” said the US White House.
The restrictions are extensive and cover systems and components connecting the vehicle to the outside world, including via Bluetooth, cellular, satellite, and Wi-Fi modules as well as automated driving systems (ADS).
The proposed notice of proposed rulemaking (NPRM) that would, if finalized as proposed, prohibit the sale or import of connected vehicles that incorporate certain technology and the import of particular components themselves from countries of concern, specifically the People’s Republic of China (PRC) and Russia.
This was first proposed in March and cover both data captured inside the car such as sensitive driver and passenger data as well as cameras and sensors that enable automated driving systems and record detailed information about American infrastructure.
“The Department of Commerce has found vehicles’ increasing connectivity creates opportunities to collect and exploit sensitive information,” said the White House. “Certain hardware and software in connected vehicles enable the capture of information about geographic areas or critical infrastructure, and present opportunities for malicious actors to disrupt the operations of infrastructure or the vehicles themselves.”
The Department of Commerce’s proposed rule would prohibit the import or sale of certain connected vehicle systems designed, developed, manufactured, or supplied by ‘entities with a sufficient nexus to the PRC or Russia.’
Specifically, the rule covers what the Department calls “vehicle connectivity systems” (VCS) which allow highly autonomous vehicles to operate without a driver behind the wheel. The rule includes restrictions on imports or sales of connected vehicles using VCS and ADS software, as well as imports of VCS hardware equipment. The Department of Commerce is also proposing procedures to let certain parties, such as small producers of vehicles, receive exemptions from the prohibitions on an exceptional basis, in order to minimize unanticipated and unnecessary disruption to industry.
The US Department of Commerce is developing the final rule and working with industry, U.S. allies and partners, and other stakeholders throughout the regulatory process to ensure any actions maximally protect U.S. national security, while minimizing unintended consequences or disruptions.
This follows an increase from 25% to 100% on the tariff rate on Chinese electric vehicles imported into the US imposed earlier this year.
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