US proposal to ban China tech will bar nearly all Chinese vehicles from its roads

WASHINGTON – The US Commerce Department on Sept 23 proposed prohibiting key Chinese software and hardware in connected vehicles on American roads due to national security concerns – a move that would effectively bar nearly all Chinese cars from entering the US market.

The planned regulation, first reported by Reuters, would also force American and other major carmakers in the coming years to remove key Chinese software and hardware from vehicles in the United States.

The Biden administration has raised serious concerns about the collection of data by Chinese companies on US drivers and infrastructure through connected vehicles, as well as about potential foreign manipulation of vehicles connected to the Internet and navigation systems. The White House ordered an investigation into the potential dangers in February.

The prohibitions would prevent testing of self-driving cars on US roads by Chinese carmakers and extend to vehicle software and hardware produced by other US foreign adversaries, including Russia.

“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 told a briefing.

“In an extreme situation, a foreign adversary could shut down or take control of all their vehicles operating in the United States all at the same time, causing crashes, blocking roads.”

The move is a significant escalation in the United States’ ongoing restrictions on Chinese vehicles, software and components. Earlier this month, the Biden administration locked in steep tariff hikes on Chinese imports, including a 100 per cent duty on electric vehicles, as well as new hikes on EV batteries and key minerals.

There are relatively few Chinese-made cars or light-duty trucks imported into the US. But Ms Raimondo said the department is acting “before suppliers, automakers and car components linked to China or Russia become commonplace and widespread in the US automotive sector… We’re not going to wait until our roads are filled with cars and the risk is extremely significant before we act”.

Nearly all newer cars and trucks are considered “connected”, with onboard network hardware that allows internet access, allowing them to share data with devices both inside and outside the vehicle.

A senior administration official confirmed that the proposal would effectively ban all existing Chinese light-duty cars and trucks from the US market, but added it would allow Chinese carmakers to seek “specific authorisations” for exemptions.

The US has ample evidence of China prepositioning malware in critical American infrastructure, White House National Security Adviser Jake Sullivan told the same briefing.

“With potentially millions of vehicles on the road, each with 10- to 15-year lifespans, the risk of disruption and sabotage increases dramatically,” Mr Sullivan said.

The Chinese Embassy in Washington last month criticised planned action to limit Chinese vehicle exports to the US: “China urges the US to earnestly abide by market principles and international trade rules, and create a level playing field for companies from all countries. China will firmly defend its lawful rights and interests.”