US Proposes New Rule Banning Chinese Tech In Connected Vehicles Over National Security Risks

Modern vehicles have GPS tracking, cameras, microphones, and other optical sensors connected to the internet. If Chinese-made software and hardware were integrated into these vehicles, then there’s a genuine risk America’s highways could be flooded with rolling spying machines.

The Biden-Harris administration is getting tougher on China ahead of the November elections to show the American people that they mean business with Beijing. A newly proposed rule from the US Commerce Department reveals the potential to ban Chinese-made software and hardware in vehicles connected to the internet.

Here’s more from the White House:

Today, President Biden is announcing strong action to protect America from the national security risks associated with connected vehicle technologies from countries of concern. The Department of Commerce is issuing a notice of proposed rulemaking (NPRM) that would, if finalized as proposed, prohibit the sale or import of connected vehicles that incorporate certain technology and the import of particular components themselves from countries of concern, specifically the People’s Republic of China (PRC) and Russia.

The announcement is the next step in a process President Biden announced in February, 2024. This NPRM incorporates public feedback submitted in response to the Department’s advance notice of proposed rulemaking (ANPRM) issued on March 1, 2024, which sought public comment on the national security risks associated with certain technologies used in connected vehicles.

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As the Department of Commerce has found, vehicles’ increasing connectivity creates opportunities to collect and exploit sensitive information. Certain hardware and software in connected vehicles enable the capture of information about geographic areas or critical infrastructure, and present opportunities for malicious actors to disrupt the operations of infrastructure or the vehicles themselves. Commerce has determined that certain technologies used in connected vehicles from the PRC and Russia present particularly acute threats. These countries of concern could use critical technologies within our supply chains for surveillance and sabotage to undermine national security.

On Sunday, US Secretary of Commerce Gina Raimondo told reporters during a conference call that “in extreme situations, a foreign adversary could shut down or take control of all their vehicles operating in the United States, all at the same time, causing crashes (or) blocking roads.”

A senior administration official told CNN that the proposed rule would not apply to vehicles already on US highways with Chinese software or hardware installed. The software ban is expected to begin for the model year 2027, and the hardware ban for the model year 2030.

Raimondo said the proposed rule, which is now undergoing a 30-day public comment period, is not a protectionist move, yet Chinese critics have disputed this. She noted, “This is not about trade or economic advantage,” adding, “This is a strictly national security action.”

Meanwhile, Tesla vehicles have faced concerns about spying in China in the last several years. In response, Elon Musk’s EV company established a data center in China to store and process data collected from vehicles, aiming to appease authorities and demonstrate compliance with Beijing regulators to address spy fears.