The Commerce Department is expected on Monday to propose prohibiting Chinese software and hardware in connected and autonomous vehicles on American roads due to national security concerns, two sources told Reuters.
The Biden administration has raised serious concerns about the collection of data by Chinese companies on U.S. drivers and infrastructure as well as the potential foreign manipulation of vehicles connected to the internet and navigation systems.
The proposed regulation would ban the import and sale of vehicles from China with key communications or automated driving system software or hardware, said the two sources, who declined to be identified because the decision had not been publicly disclosed.
The move is a significant escalation in the United States’ ongoing restrictions on Chinese vehicles, software and components. Last week, the Biden administration locked in steep tariff hikes on Chinese imports, including a 100% duty on electric vehicles as well as new hikes on EV batteries and key minerals.
Commerce Secretary Gina Raimondo said in May the risks of Chinese software or hardware in connected U.S. vehicles were significant.
“You can imagine the most catastrophic outcome theoretically if you had a couple million cars on the road and the software were disabled,” she said.
President Joe Biden in February ordered an investigation into whether Chinese vehicle imports pose national security risks over connected-car technology – and if that software and hardware should be banned in all vehicles on U.S. roads.
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The Commerce Department plans to give the public 30 days to comment before any finalization of the rules, the sources said. Nearly all newer vehicles on U.S. roads are considered “connected.” Such vehicles have onboard network hardware that allows internet access, allowing them to share data with devices both inside and outside the vehicle.