U.S. moves to ban Chinese tech from connected vehicles
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The Commerce Department is proposing a ban on Chinese software and hardware in connected and autonomous vehicles operating on U.S. roads, citing national security concerns.
Why it matters: The Biden administration is concerned that Chinese companies could collect data about U.S. drivers and infrastructure or that vehicles connected to the internet could be manipulated by foreign governments.
- "Cars today have cameras, microphones, GPS tracking, and other technologies connected to the internet," U.S. Secretary of Commerce Gina Raimondo said in a statement.
- "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."
Between the lines: The proposed rule would prohibit the import and sale of vehicles with certain hardware or software tied to China or Russia.
- It applies to systems that allow cars to connect to the internet, including telematics control units, Bluetooth, cellular, satellite, and Wi-Fi modules.
- It also applies to assisted driving systems in connected vehicles.
The big picture: The amount of Chinese software in cars on American roadways today is "limited," according to a senior administration official.
- Companies would have until 2027 to change their supply chains.
The bottom line: It's an escalation of U.S. restrictions on Chinese imports, which already includes a 100% tariff on imported electric vehicles from China.
