A U.S. ban on Chinese software in vehicles could come into effect starting with the 2027 model-year, while a hardware ban could follow in 2030. This measure, proposed by the Biden administration, stems from national security concerns about Chinese technologies. At the heart of these potential restrictions is the fear that Chinese companies could collect sensitive data on American motorists.
A blow for autonomous and connected vehicles
It's not just electric vehicles manufactured in China that are worrying American authorities. The U.S. Department of Commerce is considering banning the use of Chinese software and hardware in connected and autonomous vehicles available in its domestic market.
The details of the plan are still unclear, but sources indicate that the regulation could halt the import and sale of vehicles equipped with communication and automated driving systems from China.
An investigation launched in February
This proposed ban was initiated several months ago, following President Biden's order in February to launch an investigation into Chinese automotive technologies. “Chinese policies could flood our market with their vehicles, representing a risk to our national security,” Biden said at the time.
A forthcoming bill
The proposed ban could be made public this week. The bans would not stop at Chinese technologies, but would also extend to other adversaries of the United States, such as Russia. In May, Commerce Secretary Gina Raimondo expressed deep concern about the use of Chinese software or hardware in American vehicles. “Imagine the worst-case scenario if, for example, millions of cars on the road had their software disabled,” she said.
Timetable for bans and industry reactions
The software ban could be in place for the 2027 model-year, while the hardware interdiction could come into effect in January 2029 or for the 2030 model-year. Automakers such as GM, Toyota, VW and Hyundai have warned that they will need time to adapt their vehicles to comply with the new rules. The public will have 30 days to comment on the proposal before it’s finalized.
This crackdown on Chinese technology in vehicles follows the Biden administration's decision to quadruple import tariffs on Chinese-made electric vehicles, raising them from 25 to 100 percent (actually 102.5 percent).
