On May 14, 2024, U.S. President Joe Biden announced at the Rose Garden of the White House in Washington, DC that he would increase tariffs on Chinese products to boost American investment and jobs.
Win McNamee | Getty Images
The US Commerce Department on Monday proposed banning key Chinese software and hardware from connected cars on American roads, citing national security concerns, a move that would effectively block almost all Chinese-made vehicles from entering the US market.
The planned regulations are: First reported According to Reuters, over the next few years, the bill would force American and other major automakers to remove key Chinese-made software and hardware from vehicles they sell in the US.
The Biden administration has expressed serious concerns about Chinese companies collecting data on U.S. drivers and infrastructure through connected cars, and about the potential for foreign control of vehicles connected to the internet and navigation systems. Ordered In February, the potential dangers were investigated.
An aerial view of a new BYD electric vehicle destined for export, parked at a dock in Yantai, eastern China’s Shandong province.
Tan Ke | Future Publishing | Getty Images
This prohibition means: Self-driving cars being tested on US roads The scrutiny extends not only to vehicle software and hardware made by Chinese automakers, but also by other U.S. adversaries, including Russia.
“When foreign adversaries develop software to build vehicles, those vehicles can be used for surveillance and remote control, threatening the privacy and safety of Americans on our roads,” Commerce Secretary Gina Raimondo said at a briefing.
“In extreme circumstances, a foreign hostile force could simultaneously stop or take control of all vehicles operating within the United States, causing collisions or blocking roads.”
The move marks a major tightening of U.S. restrictions on Chinese-made vehicles, software and parts. Earlier this month, the Biden administration Trapped in a steep incline Higher tariffs on imports from China, including a 100% tariff on electric vehicles as well as new increases on EV batteries and key minerals.
Relatively few Chinese-made cars and light trucks are imported into the U.S. But Raimondo said the department is “acting before suppliers, automakers and auto parts with ties to China and Russia become commonplace in the U.S. auto industry and we are not going to wait until our roads are full of cars and the risks are too great to act.”
Nearly all new cars and trucks are considered “connected” with on-board network hardware that allows internet access and the ability to share data with devices inside and outside the vehicle.
A senior administration official acknowledged that the proposal would effectively exclude all existing Chinese-made compact cars and trucks from the U.S. market, but added that Chinese automakers would be able to apply for “special permits” to get exemptions.
The US has ample evidence that China is pre-positioning Malware on America’s Critical InfrastructureWhite House National Security Adviser Jake Sullivan also made the remarks at the same briefing.
“With potentially millions of vehicles on the road, each with a lifespan of 10 to 15 years, the risk of disruption and vandalism increases dramatically,” Sullivan said.
China’s embassy in Washington last month criticized plans to restrict Chinese car exports to the United States, saying: “China urges the United States to sincerely abide by market principles and international trade rules, and create a level playing field for enterprises from all countries. China will resolutely safeguard its legitimate rights and interests.”
Under the proposal, the software ban would go into effect for 2027 model-year models, while the hardware ban would go into effect for 2030 model-year models, or January 2029.
The Commerce Department is giving the public a 30-day comment period on the proposal, and hopes to finalize its decision by Jan. 20. The rule would apply to all on-road vehicles, but would exempt agricultural or mining vehicles that aren’t used on public roads.
The Alliance for Automotive Innovation, an organization that represents major automakers including General Motors (GM.N), Open a new tabToyota (7203.T), open a new tabVolkswagen (VOWG_p.DE), open a new tab Hyundai (005380.KS), open a new tabwarned that hardware and software changes will take time.
The group noted that connected car hardware and software is developed around the world, including in China, but did not provide details on how prevalent Chinese parts are in U.S. models.