Biden Proposes Ban on Chinese Vehicles on US Roads, Implementing Software Crackdown – Reuters

By David Shepardson

WASHINGTON – On Monday, the U.S. Commerce Department proposed a ban on crucial Chinese software and hardware in connected vehicles for American roads, citing national security concerns. This move is likely to prohibit nearly all Chinese cars from entering the U.S. market.

The proposed regulation, initially reported by various sources, aims to compel U.S. automakers and their international counterparts to eliminate significant Chinese technology from vehicles over the next few years.

The Biden administration has expressed serious concerns regarding Chinese firms’ data collection on U.S. drivers and infrastructure through connected vehicles, as well as the potential for foreign manipulation of internet-connected vehicles and navigation systems. In February, the White House initiated an investigation into these potential security risks.

The proposed restrictions would not only hinder Chinese automakers from testing self-driving cars in the U.S. but would also extend to vehicle software and hardware from other international adversaries such as Russia.

Commerce Secretary Gina Raimondo highlighted the implications of these foreign technologies, stating, "When foreign adversaries build software to operate a vehicle, it can be utilized for surveillance or remote control, endangering the privacy and safety of Americans on the road." She emphasized that in extreme scenarios, foreign adversaries could take control of numerous vehicles simultaneously, resulting in dangerous incidents and road blockages.

This initiative represents a notable escalation in the U.S. government’s ongoing restrictions on Chinese vehicles and components. Earlier this month, the Biden administration implemented significant tariff increases on Chinese imports, which included a 100% duty on electric vehicles and additional hikes on EV batteries and essential minerals.

Currently, there are relatively few Chinese-made cars or light-duty trucks entering the U.S. market. However, Raimondo noted that the department is taking action proactively, saying, "We are not going to wait until our roads are filled with cars linked to China or Russia and the risks escalate."

Most newer vehicles are considered "connected," equipped with onboard technology that enables internet access and data sharing with external devices.

A senior administration official confirmed the proposal would effectively ban all existing Chinese light-duty vehicles from the U.S. market but indicated that Chinese manufacturers could request specific exemptions.

White House National Security Adviser Jake Sullivan pointed out the risk posed by China potentially inserting malware into critical U.S. infrastructure. "With potentially millions of vehicles on the road, each with lifespans of 10 to 15 years, the risk of disruption and sabotage significantly increases," he stated.

Last month, the Chinese Embassy in Washington condemned the planned restrictions on vehicle exports to the U.S., urging the U.S. to adhere to market principles and international trade rules while creating a fair competitive environment for companies globally.

The proposal suggests implementing software prohibitions during the 2027 model year and enforcing the hardware ban by the 2030 model year or January 2029.

The Commerce Department has opened a 30-day period for public comment on this proposal, aiming to finalize it by January 20. These regulations would apply to all on-road vehicles, excluding agricultural or mining vehicles not operating on public roads.

The Alliance for Automotive Innovation, which represents major automakers such as General Motors, Toyota, Volkswagen, and Hyundai, cautioned that altering hardware and software could be time-consuming. The group noted that connected vehicle technologies are developed globally, including in China, but did not specify the extent of Chinese components in U.S. vehicles.