White House proposes ban on Chinese and Russian tech in connected vehicles

Decision follows the Commerce Department's probe into the security risks posed by Chinese-connected vehicles

The Biden administration on Monday proposed a ban on Chinese and Russian software and hardware for vehicles with built-in internet connectivity, effectively barring Chinese vehicles from the US market.

The move is driven by concerns about data collection and the potential for foreign adversaries to manipulate connected cars.

The proposed regulation, to be finalised by the US Commerce Department, would require American and foreign automakers to remove Chinese technology from vehicles sold in the US within a specified timeframe.

The White House said the rule targets technology and components from "countries of concern," including China and Russia.

"Specifically, the rule covers 'vehicle connectivity systems' (VCS) — that is, systems and components connecting the vehicle to the outside world, including via Bluetooth, cellular, satellite, and Wi-Fi modules — and 'automated driving systems' (ADS), which allow highly autonomous vehicles to operate without a driver behind the wheel," a fact sheet released by the White House stated.

"The rule includes restrictions on imports or sales of connected vehicles using VCS and ADS software, as well as imports of VCS hardware equipment," it added.

The decision follows the Commerce Department's investigation into the security risks posed by Chinese-connected vehicles.

The investigation revealed a range of potential threats, including data collection on drivers and the ability of foreign adversaries to remotely manipulate vehicles.

While there are few Chinese or Russian cars currently on US roads, the rule aims to prevent future national security threats.

As cars become more integrated into critical infrastructure, such as charging stations and smart city networks, the risk of foreign actors gathering sensitive information on American citizens and infrastructure increases.

Officials warned that such data could be used to track individuals' daily routines, including their homes, schools, and healthcare facilities.

"When foreign adversaries build software to make a vehicle, that means it can be used for surveillance, can be remotely controlled, which threatens the privacy and safety of Americans on the road," Commerce Secretary Gina Raimondo said.

She added that adversaries could remotely shut down or take control of vehicles operating in the US, leading to crashes and traffic disruptions.

The Biden administration plans to draft a final rule following a 30-day public comment period, with the goal of publishing it before the president's term ends.

The software bans would take effect for the 2027 model year, while the hardware restrictions would apply starting with Model Year 2030, or 1st January 2029 for vehicles without a model year.

The proposed rule is part of a broader effort by the US to curtail the influence of Chinese technology in critical sectors. This year, a 100% tariff was placed on Chinese electric vehicles (EVs) as part of the ongoing trade dispute.

The Commerce Department is also assessing other industries, such as drones and cloud infrastructure, for potential similar bans.

While phasing out Chinese and Russian software is relatively straightforward, hardware would be a bigger challenge due to the complexity of the supply chain.

The new rule would allow for some exceptions if companies can demonstrate mitigating measures, such as auditing or site checking. However, Chinese-made batteries are not included in the ban.

"The Department of Commerce will continue to take a proactive approach to address this national security risk before Chinese and Russian suppliers proliferate within the U.S. automotive ecosystem," said Under Secretary of Commerce for Industry and Security Alan F. Estevez.

"Our goal is always to safeguard our national security."