US proposes ban on connected vehicle tech from China, Russia

Today, the Biden administration announced new proposed measures to defend the United States’ national security from potential threats linked to connected vehicle technologies originating from China and Russia.

Once finalized, a new proposed rule from the Department of Commerce would ban the import or sale of connected vehicles and associated components designed, developed, or manufactured by entities with a Chinese or Russian nexus.

It targets “vehicle connectivity systems” (VCS), such as Bluetooth, satellite, cellular, and Wi-Fi modules, and “automated driving systems” (ADS), which enable vehicles to operate autonomously.

The Commerce Department found that these technologies come with significant risks, including potential misuse for surveillance, sabotage, and critical infrastructure disruption.

Following a public feedback process initiated in March, the new rule would prohibit VCS and ADS software imports for the model year 2027 and hardware imports for the model year 2030. Exemptions may be granted for small-scale producers to limit industry disruption.

In a statement published on Monday, the White House stressed the increasing security risks associated with connected vehicles, which can collect sensitive driver data, keep track of drivers’ locations, and harvest critical infrastructure information.

The Biden administration said that countries like China and Russia could use these capabilities to threaten U.S. national security.

“These technologies include computer systems that control vehicle movement and collect sensitive driver and passenger data as well as cameras and sensors that enable automated driving systems and record detailed information about American infrastructure,” the White House said.

“Certain hardware and software in connected vehicles enable the capture of information about geographic areas or critical infrastructure, and present opportunities for malicious actors to disrupt the operations of infrastructure or the vehicles themselves.”

The new proposed rule builds on an initiative introduced by President Biden in February to address the national security risks associated with foreign technologies in connected vehicles from China, which “could be remotely accessed or disabled.”

Today’s action follows earlier efforts to protect the U.S. auto industry. In May, President Biden increased tariffs on Chinese electric vehicles from 25% to 100%, and the Inflation Reduction Act tied a $7,500 electric vehicle tax credit to U.S. or North American manufacturing.

“Cars today have cameras, microphones, GPS tracking, and other technologies connected to the internet. It doesn’t take much imagination to understand how a foreign adversary with access to this information could pose a serious risk to both our national security and the privacy of U.S. citizens,” U.S. Secretary of Commerce Gina Raimondo said.

“To address these national security concerns, the Commerce Department is taking targeted, proactive steps to keep PRC and Russian-manufactured technologies off American roads.”