Biden administration to ban China and Russia

A new proposed rule would ban the sale or importation of certain vehicles and parts due to safety concerns

The Biden administration continues to target Chinese automakers and tech companies, with their latest actions focusing on connected cars. As the White House explained, “Chinese automakers are seeking to dominate connected car technology in the United States and around the world, posing new threats to our national security, including through our supply chain.”

To counter this threat, the U.S. Department of Commerce has proposed a new rule that would “prohibit the sale or import of connected vehicles with certain technologies and the import of certain components from countries of concern, specifically the People’s Republic of China and Russia.” China is a primary target, with the government concerned that connected cars “collect sensitive driver and passenger data” and are equipped with cameras and sensors that “record detailed information about U.S. infrastructure,” posing a potential security risk.

More: U.S. may be about to impose a ban on Chinese auto software and hardware

The White House also said that information collected by connected cars could be used by malicious actors to damage infrastructure or the cars themselves. The government also said it had identified several technologies in connected cars from China and Russia as “particularly serious threats.”

The proposed rule targets connected car systems designed, developed, manufactured or supplied by entities with “sufficient ties” to China or Russia. The rule also focuses on connectivity (including Bluetooth, cellular, satellite and Wi-Fi) and autonomous driving systems.

The rule seeks to “restrict the import or sale of connected cars that use VCS (vehicle connected system) and ADS (automated driving system) software, and the import of VCS hardware devices.” However, the proposal also calls for exemptions for small automakers in “special circumstances.”

If the rule is implemented as expected, the software ban would take effect starting with 2027 model year vehicles, while the hardware ban would apply to 2030 vehicles, or Jan. 1, 2029 for vehicles without a model year.

While specific details are still being finalized, the administration said the Commerce Department will work closely “with industry, U.S. allies and partners, and other stakeholders throughout the regulatory process” to ensure any action maximizes protection of U.S. national security while minimizing unintended consequences or disruptions.