Sep 24, 2024 11:05:00

The US plans to impose restrictions on 'connected cars' that use Chinese technology, effectively banning all Chinese cars

The US Department of Commerce has announced a policy to ban the import and sale of

connected cars equipped with software and hardware made in China and Russia. Since most modern car models are equipped with some form of communication function, it has been pointed out that most vehicles equipped with technology made in countries that are in conflict with the US, such as China and Russia, will be subject to the ban.

Exclusive: US to propose ban on Chinese software, hardware in connected vehicles | Reuters
https://www.reuters.com/business/autos-transportation/us-propose-barring-chinese-software-hardware-connected-vehicles-sources-say-2024-09-21/

US proposes ban on smart cars with Chinese and Russian tech | CNN Business
https://edition.cnn.com/2024/09/23/tech/us-car-software-ban-china-russia/index.html

US to ban Chinese connected car software and hardware, citing security risks | Ars Technica
https://arstechnica.com/cars/2024/09/us-to-ban-chinese-connected-car-software-and-hardware-citing-security-risks/

In a telephone conference on September 22, 2024, U.S. Secretary of Commerce Gina Lemond announced that a government investigation begun in February had found that Chinese- and Russian-made software and hardware installed in U.S. vehicles pose a variety of national security risks, including the risk of remote control through hacking and the collection of drivers' personal information.

'If a hostile foreign power were to develop communications software in our vehicles, it could be used to monitor or remotely control them, threatening the privacy and safety of Americans on our roads. In extreme circumstances, a foreign power could potentially shut down or manipulate our vehicles en masse, causing crashes or roadblocks,' LeMond said.

The software ban will reportedly take effect for model years 2027 and later, while the hardware ban will take effect for model years 2030. However, it does not apply to vehicles already on the roads in China that are equipped with Chinese-made software.

The new regulations define 'connected vehicles' as almost any car, bus or truck that connects to a network for a variety of functions, such as roadside assistance and satellite communications. The regulations cover both the

hardware and software of key technologies that allow vehicles to communicate with the outside world, such as Bluetooth, WiFi and mobile networks.

The calls for new regulatory proposals come as tensions between the two economic powers in areas ranging from semiconductors to AI grow. China is investing heavily in the connected car market, and its expansion into Europe has been a particular thorn in the side of US authorities, an ally of the EU.

Meanwhile, China is also concerned about American cars running on its soil, and media reports have said Chinese authorities have banned Tesla vehicles from entering their premises.

'While the Commerce Department cited national security concerns in this case, the move should be seen as part of a broader effort to slow or block heavily subsidized Chinese cars from entering the US. The Chinese government directly subsidizes billions of dollars a year to allow Chinese automakers to sell their cars overseas at ultra-low prices,' Ars Technica said.

Sources who spoke to Reuters said the ban would apply not only to China but also to other US adversaries such as Russia.