The U.S. Department of Commerce’s Bureau of Industry and Security (BIS) on Monday banned the sale or import of Chinese and Russian connected cars that integrate certain software and hardware or sell those components separately, according to BIS. announced a notice of proposed rulemaking. press release.
It focuses on hardware and software integrated into vehicle connectivity systems (VCS) and software integrated into automated driving systems (ADS).
“These are critical systems that enable external connectivity and self-driving capabilities in connected cars through specific hardware and software,” the release states. “Malicious access to these systems could allow adversaries to access and collect our most sensitive data and remotely control vehicles on U.S. roads.” Applies to all wheeled road vehicles such as trucks and buses, but excludes vehicles not used on public roads, such as agricultural and mining vehicles.
The release states that certain technologies originating from China or Russia pose an “unreasonable risk” to U.S. infrastructure and consumers. The regulation is said to be a “pre-emptive measure” to protect national security and drivers.
“Today’s vehicles are equipped with Internet-connected cameras, microphones, GPS tracking, and other technology,” U.S. Secretary of Commerce Gina Raimondo said in a release. “It doesn’t take much imagination to see how a foreign adversary with access to this information could pose a significant risk to both national security and the privacy of U.S. citizens. To address security concerns, the Department of Commerce is taking aggressive, targeted steps to keep Chinese and Russian technology off U.S. roads.”
The rule bans vehicles equipped with the technology, even if they are made in the U.S., and will go into effect starting with the 2027 software model year, according to the release. The hardware ban will take effect on the 2030 model year, or January 1, 2029. For units without model year.
BIS will accept public comments on the proposed rule for 30 days from the date of publication. This regulation was published on September 23rd.
The Alliance for Automotive Innovators released a statement from President and CEO John Bozella saying the organization shares concerns about national security risks with automakers. said. But that timeline could pose a problem for some automakers, he said.
“Important context: Today’s connected car supply chain coming into the United States from China actually has very little technology, both hardware and software,” Bozzella said in a statement. “However, this rule will require automakers to find alternative suppliers in some cases.
“I’ve said this in other contexts, but it’s true here too. You can’t just flip a switch and change the world’s most complex supply chain overnight. It’s going to take time. (See: China and Batteries important minerals).
Bozzella said the proposed rule’s timeline would allow some automakers to make the necessary transition, but could make it difficult for others.
“This has been a thoughtful, thorough and consultative process by the Bureau of Industry and Security,” Bozzella said. “We intend to provide additional perspectives as we develop a final rule that reflects industry realities and achieves our shared national security goals.”
Earlier this month, the U.S. House of Representatives approved a bill that would ban tax credits for electric vehicles (EVs) that use Chinese battery technology.
HR 7980, dubbed the “Ending China’s Electric Vehicle Dominance in the United States Act of 2024,” passed the House of Representatives by a vote of 217-198. The bill was accepted by the Senate and passed to the Finance Committee on September 16th.
According to the South China Morning Post (SCMP), the bill would limit tax credits for vehicles that use “battery technology licensed from China” if the contract value exceeds $5 million.
According to the SCMP, the Inflation Control Act already prohibits tax credits for EVs using Chinese-made batteries.
Bozzella said in a statement at the time that if passed, the bill would require reversing federal greenhouse gas emissions standards and “aggressive” EV sales targets.
“Why? Because those standards and goals (we called them ‘the very limits of achievability’) were based in part on the availability of consumer incentives in the Inflation Control Act.” Bozella said. “Remember, to even qualify for these incentives, cars must be manufactured in North America and cannot contain battery parts or critical minerals from China after 2025.
“What if the incentives are gone now? The auto industrial base faces serious economic and national security risks from China, reducing U.S. competitiveness and pulling the rug from the rug with consumers. ”
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Photo courtesy: metamorworks/iStock
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