US proposes ban on Chinese vehicle software

ChineseSoftwareBan

The U.S. Commerce Department plans to propose a ban on foreign software and hardware in connected and autonomous vehicles on American roads. The move is due to national security concerns over the collection of data by foreign companies on U.S. drivers and infrastructure. The proposed regulation would prohibit the import and sale of vehicles with key communications or automated driving system software or hardware.

This marks a significant escalation in the United States’ ongoing restrictions on foreign vehicles, software, and components.

Commerce Secretary Gina Raimondo emphasized the risks, stating, “You can imagine the most catastrophic outcome theoretically if you had a couple million cars on the road and the software were disabled.”

President Joe Biden earlier ordered an investigation into whether vehicle imports pose national security risks over connected-car technology and if such software and hardware should be banned. “Policies could flood our market with its vehicles, posing risks to our national security,” Biden said.

The Commerce Department plans to allow 30 days for public comment before the rules are finalized.

Commerce Department’s proposed vehicle software ban

Nearly all newer vehicles on U.S. roads are considered “connected,” meaning they have onboard network hardware that allows internet access, enabling them to share data with devices both inside and outside the vehicle.

The prohibitions would include vehicles with certain Bluetooth, satellite, and wireless features as well as highly autonomous vehicles that could operate without a driver behind the wheel. The proposed prohibitions on software would take effect in the 2027 model year, while the ban on hardware would take effect in January 2029 or the 2030 model year. A bipartisan group of U.S. lawmakers has raised alarms about foreign auto and tech companies collecting and handling sensitive data while testing autonomous vehicles in the United States.

The prohibitions would also extend to other foreign U.S. adversaries, including Russia. A trade group representing major automakers, including General Motors, Toyota Motor, Volkswagen, and Hyundai, warned that changing hardware and software would take time. The carmakers noted their systems “undergo extensive pre-production engineering, testing, and validation processes and, in general, cannot be easily swapped with systems or components from a different supplier.”

According to reports, the proposed rule aims to ensure the security of the supply chain for U.S. connected vehicles and will apply to all vehicles on U.S. roads, excluding agriculture and mining vehicles.