US proposes ban on Chinese, Russian connected car technology • The Register

The U.S. Department of Commerce has decided not to wait for the inevitable and today announced plans to ban connected vehicle technology – and vehicles that use it – from Chinese and Russian sources.

In an announcement today, the Bureau of Industry and Security (BIS) said it is proposing a rule that would ban the import and sale of vehicle connectivity system (VCS) or automated driving system (ADS) hardware or software made by a manufacturer “with a connection to (China) or Russia.” The proposed rule would also ban the integration of VCS or ADS technology from China or Russia into vehicles manufactured in the U.S.

If passed as written, the rule would prevent vehicles equipped with Chinese automotive technology from driving on U.S. roads — even if only for testing purposes, according to the proposal. The rationale for the ban, if it isn’t immediately clear, is the potential for such connected-vehicle technology to enable China to spy on the U.S. — a concern the Biden administration first raised in February when it directed the Commerce Department to investigate the issue.

“China is imposing restrictions on American cars and other foreign cars driving in China,” President Biden said earlier this year. “Why should connected vehicles from China be allowed to drive in our country without safeguards?”

More than ever, vehicles are directly connected to our country’s digital networks

The White House said the Commerce Department’s research has now shown that connected vehicle technology can do exactly what it was concerned about, citing China and Russia as “particularly acute threats.”

“These technologies include computer systems that monitor vehicle movements and collect sensitive driver and passenger data, as well as cameras and sensors that enable automated driving systems and capture detailed information about America’s infrastructure,” the White House said in a statement. “Now more than ever, vehicles are directly connected to our nation’s digital networks.”

It would be a simple matter, the administration argued, for a foreign company to operate in a country like China or Russia, where governments “force companies under their jurisdiction … to cooperate with security and intelligence agencies,” the proposed regulations said.

“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 American citizens,” said Secretary of Commerce Gina Raimondo. “To address these national security concerns, the Department of Commerce is taking targeted, proactive steps to keep PRC and Russian-made technologies off American roads.”

Because it is still a proposal, the rule could change significantly before it goes into effect. Once it goes into effect, the software restrictions will apply to all vehicles from model year 2027 onwards, with hardware restrictions going into effect from model year 2030 onwards. Non-model year units will be banned from January 2029.

As we noted in our previous coverage of the Biden administration’s looming ban on Chinese vehicle technology, there are currently no Chinese vehicles on U.S. roads, so the ban is preemptive.

That said, there are a number of U.S. automakers that make vehicles in China for sale in the U.S. market. The Commerce Department did not answer our questions about how those vehicles would fit into the law, but there is a provision in the proposed rules that would allow manufacturers to apply for an exemption.

Along with a ban on the import and sale of connected vehicle technology, the Biden administration in May raised tariffs on Chinese-made electric vehicles from 25 percent to 100 percent; China has announced retaliatory measures. ®