Biden Administration could ban Chinese software in connected cars

Chinese software could soon be prohibited for use in connected and autonomous vehicles in the US due to national security concerns, according to Reuters and Bloomberg.

The possible ruling from the Biden administration, which would be enforced by the US Commerce Department, "would bar Chinese software in vehicles in the United States with Level 3 automation and above," reported Reuters. The ban would also prohibit the use of advanced wireless communications modules developed by Chinese companies in connected cars and would prohibit testing autonomous vehicles from Chinese companies on US roads.

Mercedes-Benz became the first car manufacturer to gain approval for a Level 3 autonomous driving system in the US in September 2023, according to Forbes. Level 3 systems, a tier determined by SAE International's automated driving levels, manage most aspects of driving with the caveat that humans take control of operating the vehicle when prompted by the car's system. Tesla's Autopilot and General Motors Super Cruise systems are both Level 2 systems, said Forbes.

Cybersecurity concerns

The autonomous vehicle proposal would also require automakers and suppliers to show confirmation that their software wasn't developed in China, explained Reuters. The Biden administration is concerned that Chinese companies could access the driver monitoring system to listen in to or record conversations of the vehicle's occupants.

The White House and State Department met with officials from the US, Australia, Canada, the European Union, Germany, India, Japan, South Korea, Spain and the United Kingdom to discuss such cybersecurity concerns with connected vehicles last week, said Reuters.

The proposed limitations could go into effect as soon as later this month, reported Bloomberg. In March, the Biden administration launched an investigation into cybersecurity risks from Chinese vehicle software.

The administration's proposal could pose challenges to global automakers, which have "become increasingly dependent on Chinese suppliers for technology needed for connected vehicles," said Bloomberg.

Last July, research group Omdia forecast that over 900 million connected cars will be on the road in 2030. Google, Apple and Amazon will likely be among companies competing with car manufacturers to develop connected car software, added Omdia.