The U.S. Department of Commerce’s Bureau of Industry and Security (BIS) has proposed a new rule to enhance national security and protect American drivers.
This rule aims to prohibit the sale and import of connected vehicles with certain components linked to China or Russia.
This proposal comes just months after Biden implemented a 100% tariff on electric vehicles from China.
The proposal focuses on two critical systems in connected vehicles.
- Vehicle Connectivity System (VCS) – includes any system that allows the car to communicate externally. This can be Bluetooth, Wi-Fi, or satellite.
- Automated Driving System (ADS) – includes parts that allows a car to operate without a driver.
The concern for these features is that people with malicious intent could potentially access sensitive data and remotely control vehicles on American roads.
This rule would apply to all wheeled on-road vehicles, including cars, trucks, and buses. However, it excludes off-road vehicles like those used in agriculture or mining.
The BIS has determined that technologies from China or Russia in these systems pose an undue risk to U.S. critical infrastructure and driver safety.
“Cars today have cameras, microphones, GPS tracking, and other technologies connected to the internet. It doesn’t take much imagination to understand how a foreign adversary with access to this information could pose a serious risk to both our national security and the privacy of U.S. citizens. To address these national security concerns, the Commerce Department is taking targeted, proactive steps to keep PRC and Russian-manufactured technologies off American roads,” said U.S. Secretary of Commerce Gina Raimondo.
National Security Advisor Jake Sullivan highlighted the importance of this action in protecting the American people and critical infrastructure.
He acknowledged the benefits of connected vehicles but stressed the clear data security and cybersecurity risks posed by components sourced from countries of concern.
This rule is not going to just cover China or Russia.
Manufacturers with a nexus to China or Russia would also be prohibited from selling connected vehicles that incorporate VCS hardware or software or ADS software in the United States, even if the vehicle was made in the United States.
The timeline for implementation is staggered. Software prohibitions would take effect for Model Year 2027, while hardware prohibitions would begin for Model Year 2030 or January 1, 2029, for units without a model year.
This proposed rule is being implemented under BIS’s Information and Communications Technology and Services (ICTS) authorities.
These authorities allow the Department of Commerce to establish criteria for prohibiting technologies that pose undue risks to national security, critical infrastructure, or the digital economy of the United States.
The proposal incorporates public feedback from an earlier Advance Notice of Proposed Rulemaking published on March 1, 2024. BIS is now seeking additional public comments on this proposed rule from all interested parties.
Elizabeth Cannon, Executive Director of the Office of Information and Communications Technology and Services, emphasized the importance of this rule in safeguarding critical technologies. She stated that without this proposed rule, there would be an open door for foreign adversaries to compromise one of America’s most important assets: cars.
This action is part of a broader effort by the Biden-Harris Administration to ensure that Americans can drive safely and securely, free from risks posed by foreign technologies.
It represents a proactive approach to addressing potential national security risks before Chinese and Russian suppliers proliferate within the U.S. automotive ecosystem.
If this proposal passes, could it be the end of Chinese cars in the US?
Source: Bureau of Industry and Security
