U.S. ban on Chinese auto software and hardware could

Automakers say they need time to find new suppliers

It’s not just Chinese-made electric vehicles that are of concern to the Biden administration, with the U.S. Commerce Department expected to propose a ban on the use of Chinese software and hardware in connected and self-driving cars on the U.S. market

While many key details of the plan remain under wraps, sources say the regulation would ban the import and sale of Chinese cars equipped with certain communications and self-driving system software/hardware. Regulators are concerned that Chinese companies will collect data on American drivers.

Read: Biden administration may ban Chinese software from self-driving cars

The possibility of a large-scale ban has been rising for months since U.S. President Joe Biden ordered an investigation into Chinese auto technology in February over national security concerns.

“China’s policies could flood our markets with its cars, posing a threat to our national security,” Biden said at the time. “I will not let that happen on my watch.”

The proposed ban, which could be announced this week, would extend to other U.S. adversaries including Russia, Reuters has learned. In May, Commerce Secretary Gina Raimondo expressed serious concerns about U.S. cars using Chinese software or hardware.

“In theory, you could imagine the most catastrophic consequences if you had millions of cars on the road and the software was disabled,” she said.

A ban on software could come on 2027 model-year vehicles, while a ban on hardware could take effect in January 2029 or 2030. The trade group, which represents GM, Toyota, Volkswagen and Hyundai, said it would take time for companies to make the necessary software and hardware changes to comply with any ban.

The public will have 30 days to comment on the proposed ban before the rules are finalized.

The Biden administration has decided to quadruple import tariffs on Chinese-made electric vehicles from 25% to 100%, after which the United States will crack down on software and hardware from China.