US Commerce Department Outlines Possible Banning of Chinese Products in Internet Connected Automobiles

The US has plans to block Chinese hardware and software in American connected and Autonomous vehicles on national security grounds.

New concerns that have cropped up in the Biden administration include details of American drivers and infrastructure that Chinese companies have collected. Specialists are especially concerned with interference from other countries in cars rigged with links to the Internet, as the systems might be controlled from afar.

Commerce Secretary Gina Raimondo underscored the risks in a statement made in May, warning of potentially catastrophic outcomes: “The worst case scenario can be thought of theoretically if of course you had a couple million cars on the road and the software were shut down.”

The new regulations are prospective and are directly aimed at the Chinese technology that is being applied to what was referred to as connected vehicles which include cars that are fitted with internet connection and the ability to share information with other devices. The ban on Chinese software might start as early as the 2027 model year in case of software while the limitations on the hardware are expected to commence as early as 2029 or 2030 model year.

This measure is a part of the stepped up restrictions on Chinese imports by the United States. It means the Biden administration introduced quite high tariffs for further Chinese imports; they set a 100% duty on imported EV and critical EV batteries, and essential minerals.

If the proposed regulations are to advance, market specialists and interested parties will be attentively observing the consequences in the industry of automobiles and relations in international trade.