On Tuesday, January 14th, the U.S. Department of Commerce officially announced the prohibition of hardware and software from China and Russia for domestic connected vehicles. This measure is the latest action taken by the Biden administration to prevent foreign adversaries from carrying out cyber-attacks and misusing data.
The ban was first proposed in September last year to address potential risks posed by modern vehicle software and sensors. In effect, the ban essentially prohibits almost all Chinese and Russian vehicles from entering the U.S. market.
According to the statement from the Department of Commerce, starting from the 2030 models, the import of Chinese and Russian vehicle connectivity system hardware containing Bluetooth, cellular, and satellite components will be prohibited. Additionally, starting from the 2027 models, the use of Chinese and Russian autonomous driving software will be banned.
Furthermore, the Department of Commerce plans to prohibit manufacturers with “close ties” to China and Russia from selling connected vehicles in the U.S., regardless of where these vehicles are produced.
The Commerce Department stated that this ban aims to address potential risks to national security that could be “excessive and unacceptable,” especially for vehicle technologies that rely on the internet for data transmission and reception, such as GPS tracking systems.
Commerce Secretary Gina Raimondo said in the statement, “This is a targeted measure designed to ensure that technology manufactured in China and Russia does not appear on American roads and to protect our nation’s connected vehicle supply chain.”
She emphasized that this ban is a necessary step to safeguard U.S. national security and protect the privacy of the American people.
This regulation currently only applies to passenger vehicles, while commercial vehicles, such as trucks and buses, have not been included in the scope due to their more complex supply chains. The Commerce Department added that measures related to commercial vehicles will be introduced in the future.
The Commerce Department conducted a seven-month investigation into the risks of connected vehicles, finding a range of threats as connected vehicles become increasingly intertwined with critical infrastructure such as charging stations, smart roads, and cities.
Subsequently, the Department of Commerce first introduced the proposal for the ban in September last year. Raimondo said at the time, “When a foreign adversary develops software that powers an automobile, it means they can use that to surveil, they can use that to control remotely, which threatens the privacy and security of Americans on the road.”
“In extreme cases, a foreign adversary could potentially simultaneously shut down or control all of their vehicles operating in the U.S., leading to crashes and road blockages,” she added.
She referenced Europe as a “cautionary tale.” Following the liberalization of the electric vehicle market in Europe, Chinese-made vehicles quickly flooded in.
Raimondo stated, “We’re not going to wait until our roads are clogged with cars, and the risk is high, before we take action—before suppliers, automakers, and parts companies from China and Russia become pervasive and ubiquitous in the U.S. automotive industry.”
In the same month, the Biden administration imposed significantly increased tariffs on Chinese imports, including a 100% tariff on electric vehicles, and raised tariffs on electric vehicle batteries and critical minerals.