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Canada's Auto Industry Wants Chinese Vehicle Software Banned

The Polestar 4 | Photo: Polestar
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Benoit Charette
The federal government is being pressed to follow the lead of the U.S. on the issue.

Canada's auto industry is calling on the federal government to follow the U.S. lead and ban Chinese software and hardware used in connected vehicles on North American roads. The move, motivated by national security concerns, could result in a ban on key components, potentially excluding Chinese vehicles from the North American market.

Earlier this week, on September 23, the U.S. Department of Commerce proposed measures to restrict the use of these technologies, citing the risks of data collection on drivers (and owners) and US infrastructure, as well as the possible manipulation of connected vehicles. This comes after the White House launched an investigation into the matter in February.

Similar measures for Canada
Chrystia Freeland, Canada's Finance Minister and Deputy Prime Minister, said this week that the country is “absolutely” considering a similar ban. She stressed that the Canadian government was taking the threats posed by China seriously, particularly in terms of cyber security.

Tariffs and ongoing consultations
From October 1, a tariff of 100 percent (actually 102.5 percent) will be applied to Chinese-made electric vehicles imported into Canada. For now, the measure will affect only Tesla and Polestar, but that could be expanded if cybersecurity concerns are confirmed. Freeland also said that consultations with industry were underway, and that the government was assessing the need for further restrictive measures.

Tesla Model Y, multimedia screen
Tesla Model Y, multimedia screen | Photo: Tesla

Harmonization with the United States
Brian Kingston, CEO of the Canadian Vehicle Manufacturers' Association (CVMA), supported the U.S. initiative, stating that “the risks identified in the U.S. regarding connected vehicle technologies also affect Canada”. The Canadian Automotive Parts Manufacturers' Association echoed that sentiment.

The risks of connected vehicles
Almost all new vehicles are now “connected” - equipped with cameras, microphones, Bluetooth connectivity and network hardware for Internet access. This allows data to be shared both inside and outside the vehicle, an aspect that China could use for espionage purposes.

Stakes for the automotive industry
If the proposed ban were to come into force for software in 2027 and for hardware in 2030, some manufacturers might need more time to comply with the new requirements. According to the Alliance for Automotive Innovation, very little connected vehicle hardware or software is currently imported from China, but manufacturers will need to find new suppliers to comply with the new rules.

A call to action for Canada
Doug Ford, Premier of Ontario, urged Canada to keep a close eye on its American allies. “Canada must stay in step with our American allies and do the same,” he said in a message posted on Platform X.

The Canadian and American automotive industries remain united in the face of a growing threat from connected vehicle technologies from China and Russia. As the U.S. moves towards bans, Canada could soon follow suit.

Benoit Charette
Benoit Charette
Automotive expert
  • More than 30 years of experience as an automotive journalist
  • More than 65 test drives last year
  • Attended more than 200 new vehicle launches in the presence of the brand's technical specialists