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- The new rules target cars and technology from China and Russia.
- Importing cars is prohibited for national security reasons.
- Machines and software may be banned.
The US President's administration has taken another step closer to banning imports of Chinese cars and technology, a move that could pose a serious challenge for both American and foreign automakers.
The White House said in a statement that it had taken “strong action to protect America from national security risks associated with the People’s Republic of China and the Russian Federation’s use of U.S. connected car supply chains.” As part of that effort, the Commerce Department finalized a rule that would “prohibit the sale and import of connected vehicles and software systems, as well as connected cars shipped” from China and Russia.
The White House said Bluetooth, cellular, satellite and Wi-Fi could provide customers with greater convenience and security, but that “foreign adversary involvement in supply chains” posed a significant threat. They suggested that this could give “malicious actors unrestricted access to these connected systems and the data they collect.”
The administration went on to point to “China’s cyber espionage and intrusion operations that continue to pose a serious threat to critical infrastructure and public safety in the United States.” They noted the recent Volt Typhoon attacks on communications, energy, transportation, and water systems, which the Cybersecurity and Infrastructure Security Agency blamed on state-sponsored hackers from China.
In addition to the potential to disrupt critical U.S. infrastructure, the government is concerned about “the massive collection of sensitive information, including geolocation data, audio and video recordings, and other life pattern analysis.” As the recent Tesla Cybertruck attack showed, modern cars collect a lot of information, and foreign governments can use this to their advantage.
The White House said the rule “will prohibit the import or sale of certain connected transportation systems designed, manufactured, or supplied by entities affiliated with the PRC or Russia.” This includes connectivity systems and components such as Bluetooth, cellular, satellite, and Wi-Fi modules, as well as automated driving systems.
The bans also include “restrictions on the import or sale of connected cars using VCS [vehicle connectivity systems] and ADS [automated driver assistance systems] software, as well as the import of VCS hardware.” The software restrictions will take effect for the 2027 model year, and the hardware restrictions for the 2030 model year.
Interestingly, the rule also applies to companies that manufacture cars in America. As the White House explained, “the rule also includes a ban on the sale of connected cars in the United States by entities owned, controlled, or subject to the jurisdiction or direction of the PRC or Russia – even if those vehicles were manufactured in the United States.” This takes effect for the 2027 model year.
This rule only applies to passenger cars, but the government is now planning to apply something similar to commercial vehicles, as well as vehicles weighing more than 10 pounds (000 kg).
While the impact of the rules is yet to be felt, the Buick Envision and Lincoln Nautilus models will be fine. Reuters quoted a senior official as saying that both models could potentially continue to be imported because the ban “would not apply to Chinese software developed before the new rules take effect unless it is supported by a Chinese company.” Polestar, on the other hand, may have to get special permission.
