The Department of Commerce is issuing a notice of proposed rulemaking (NPRM) that, if finalized, would ban the sale or import of connected vehicles with technology and components from China and Russia.
The Biden Administration is doubling down on proposed rules to bar Chinese software from use in connected vehicles in the US.
The Administration said these regulations stem from concerns over national security threats and would go into effect for software with Model Year 2027 and hardware for Model Year 2030. The Department of Commerce is issuing a notice of proposed rulemaking (NPRM) that, if finalized, would ban the sale or import of connected vehicles with technology and components from China and Russia.
"Chinese automakers are seeking to dominate connected vehicle technologies in the United States and globally, posing new threats to our national security, including through our supply chains," said the White House in a statement issued today. "The Biden-Harris Administration is committed to ensuring that our automotive supply chains are resilient and secure from foreign threats."
Updates to these regulations build on the Administration's proposals from February and August of this year. In August, the Department of Commerce said the proposed ruling would "would bar Chinese software in vehicles in the United States with Level 3 automation and above." Level 3 systems manage the majority of aspects of driving, but humans can take control of the vehicle when prompted by the cars system.
The White House noted that while connected vehicles provide benefits such as vehicle safety and navigation assistance, they also pose security threats. The integrated computer systems in these vehicles collect driver data and include cameras and sensors recording information about US infrastructure. The Department of Commerce found that with vehicles becoming more connected, new opportunities have arisen for bad actors to collect and exploit sensitive information and possibly take over control of connected vehicles.
Focus of NPRM
The proposed rule to ban connected vehicles from China and Russia specifically targets "vehicle connectivity systems" (VCS), which are features connecting vehicles to other digital and network infrastructure via Bluetooth, cellular, satellite and Wi-Fi modules.
The Administration's regulation would also target "automated driving systems" (ADS) where vehicles operate without a driver. However, the Department of Commerce said it will propose procedures to allow certain parties such as small producers of vehicles to receive exemptions from the regulations.
"As the Department of Commerce develops the final rule, the Administration encourages interested stakeholders to share input with the Department so that their views can be taken into consideration."
The Biden Administration is also concerned with the impact of Chinese EVs on the US supply chain. "In May of this year, President Biden directed an increase from 25% to 100% on the tariff rate on Chinese electric vehicles under Section 301," according to the statement from The White House.
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