The US Commerce Department has proposed a ban on Chinese software and hardware in vehicles with built-in internet connections, citing concerns about data collection on American drivers and the potential for remote manipulation. This would essentially prevent almost all Chinese cars from entering the US market.

The proposed rule comes amidst escalating US-China trade tensions and mirrors similar tariffs imposed on Chinese electric vehicles.

While acknowledging the current limited presence of Chinese vehicles in the US, the Biden administration aims to implement the ban before leaving office, emphasising a proactive approach to mitigate future national security threats posed by connected vehicles.

The proposed ban would impact software starting with the 2027 model year and hardware from the 2030 model year or January 2029. The public has 30 days to comment on the proposal, and the Commerce Department aims to finalise it by 20 January 2025.

The banning of Chinese software and hardware for vehicles is the latest step in a wider US effort to crack down on Chinese vehicles.  Earlier this month, the US sharply raised tariffs on Chinese imports, including a 100 per cent tariff on Chinese electric vehicles.

The rule would also ban Russian software and hardware.

There are few Chinese or Russian cars on the road in the US currently and the rule is designed to neutralise the national security threat they could pose in the future, officials said.

As reported by the Financial Times yesterday, Commerce Secretary Gina Raimondo said the proposed rule is being issued to address these new national security threats before suppliers, automakers and car components linked to China or Russia become commonplace and widespread in the US. 

“We’re not going to wait until our roads are filled with cars and the risk is extremely significant before we act,” Detroit Free Press quoted her as saying.  She pointed to Europe as a “cautionary tale” where Chinese cars have quickly flooded the market.

However, the rule not only relates to Chinese-made vehicles but also components from China in vehicles made elsewhere. 

Nearly all newer cars and trucks are considered “connected” with onboard network hardware that allows internet access, allowing them to share data with devices both inside and outside the vehicle.

The Alliance For Automotive Innovation, a group representing major automakers including General Motors, Toyota, Volkswagen and Hyundai, has noted that connected vehicle hardware and software are developed around the world, including China, but could not detail to what extent Chinese-made components are prevalent in US models.

Senior US officials outlined a range of possible threats to American consumers, such as collecting data on where drivers live, send their children to school or go to the doctor.

In an extreme example, they said a foreign adversary could shut down or take control of all of their vehicles operating in the US, causing crashes and blocking roads.

Related: Chinese-made EVs in the UK are transmitting user data to China and could allow remote control and shutdown of vehicles

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Featured image: US Lawmakers Want Chinese Companies Banned From Testing Self-Driving Tech, Car Scoops, 19 July 2023