On September 23, the U.S. Department of Commerce officially proposed to the Biden administration a ban on the use of automotive software and hardware produced in China for connected vehicles on American roads.
This move follows the imposition of a 100% tariff on Chinese electric vehicles and further increases in tariffs on electric vehicle batteries and critical minerals, marking another escalation of restrictions.
According to reports, President Biden ordered an investigation in February to determine whether imported cars from China pose a national security risk due to their connected vehicle technology, and whether software and hardware from China should be banned from all vehicles on U.S. roads.
The Department of Commerce plans to allow a 30-day public comment period before finalizing the proposal.
Almost all new vehicles on American roads are considered "connected vehicles." These vehicles are equipped with onboard network hardware that allows them to access the Internet, enabling data sharing with both in-vehicle and external devices.
U.S. Commerce Secretary Gina Raimondo stated that when foreign adversaries create software capable of monitoring and controlling vehicles remotely, it threatens the privacy and safety of Americans on the road. "In extreme cases, foreign adversaries could simultaneously disable or control all their vehicles running on U.S. roads, causing collisions and traffic jams." Her description seems reminiscent of scenes from many movies directed by Americans.
The Department of Commerce has proposed a ban on software from China starting in 2027, while a ban on hardware would take effect in January 2029 or with 2030 model year vehicles. The related bans would include vehicles with Bluetooth, satellite, and wireless capabilities, as well as high-level autonomous vehicles that can operate without a driver.
However, this move has faced pushback from automobile manufacturers.
A trade organization representing major automakers such as General Motors, Toyota, Volkswagen, and Hyundai has warned that changing hardware and software suppliers takes time. Automakers pointed out that their systems have undergone extensive pre-production engineering, testing, and validation processes, and generally cannot be easily swapped with systems or components from other suppliers.
Nevertheless, even if the proposed measures are implemented, they would not have a significant impact on Chinese automotive manufacturers at this time. Data from the China Passenger Car Association indicates that in 2023, the total number of passenger cars exported from China to the United States was 74,800 units, accounting for just 1.4% of total exports; new energy passenger cars totaled 18,600 units, making up a mere 0.4%.