The U.S. Commerce Department has proposed banning key Chinese software and hardware in connected vehicles on American roads due to national security concerns. This move would effectively prevent Chinese cars and trucks from entering the U.S. market, as well as require American automakers to remove Chinese components from vehicles. The proposed regulations are in response to concerns about data collection by Chinese vehicles and potential foreign manipulation of connected vehicles.
The ban would also extend to Russian software and hardware, with potential to include other U.S. adversaries. The regulation would make software prohibitions effective in the 2027 model year and hardware ban in the 2030 model year. The public has 30 days to comment on the proposal, with the goal of finalizing it by January 20. The rules would cover all on-road vehicles except for agricultural or mining vehicles, drones, and trains.
The Commerce Department believes that the ban would apply to all vehicles manufactured in China, including those imported by GM and Ford from China. The U.S. government has expressed concerns about China prepositioning malware in critical infrastructure, increasing the risk of disruption and sabotage. The Chinese government has urged the U.S. to provide Chinese companies with a fair business environment.
The Alliance for Automotive Innovation, representing major automakers, has stated that some manufacturers may need more time to comply with the proposed regulations. While there is limited Chinese hardware and software entering the U.S., automakers may need to find alternative suppliers to meet the new requirements.
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