US proposes ban on connected vehicle tech from China, Russia

US proposes ban on connected vehicle tech from China, Russia

September 23, 2024 at 07:12PM

The Biden administration proposed a rule by the Department of Commerce to ban the import or sale of connected vehicle technologies from Chinese or Russian entities, citing national security concerns. The rule targets vehicle connectivity systems and automated driving systems, due to potential risks of surveillance and infrastructure disruption. Exemptions may be granted, and the announcement follows earlier efforts to protect the U.S. auto industry.

From the meeting notes, the Biden administration has announced new proposed measures to defend the United States’ national security from potential threats linked to connected vehicle technologies originating from China and Russia. The Department of Commerce is proposing a new rule that would ban the import or sale of connected vehicles and associated components designed, developed, or manufactured by entities with a Chinese or Russian nexus. The rule targets “vehicle connectivity systems” (VCS) and “automated driving systems” (ADS), due to the significant risks associated with potential misuse for surveillance, sabotage, and critical infrastructure disruption.

The new rule, once finalized, would prohibit VCS and ADS software imports for the model year 2027 and hardware imports for the model year 2030. However, exemptions may be granted for small-scale producers to limit industry disruption. The White House has emphasized the increasing security risks associated with connected vehicles, particularly in terms of collecting sensitive driver data, tracking drivers’ locations, and harvesting critical infrastructure information, which could be exploited by countries like China and Russia to threaten U.S. national security.

These proposed measures build on earlier initiatives introduced by President Biden to address the national security risks associated with foreign technologies in connected vehicles from China. The administration increased tariffs on Chinese electric vehicles from 25% to 100% and tied a $7,500 electric vehicle tax credit to U.S. or North American manufacturing, in efforts to protect the U.S. auto industry. U.S. Secretary of Commerce Gina Raimondo stressed the national security concerns and announced targeted, proactive steps to keep Chinese and Russian-manufactured technologies off American roads.

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