Key Takeaways
- The US Commerce Department wants to impose limitations on Chinese-made software in connected vehicles.
- The proposal will focus on software and specific components, rather than the whole car.
- Automakers will have to use software and data-managing components made in allied countries.
The United States Commerce Department intends to introduce proposals that could see limitations imposed on Chinese-made software for connected vehicles, reports Reuters. These limits are expected to extend to other countries the US considers adversaries.
This does not concern the entire car but rather the software and specific components that “manage the data around that car that would have to be made in an allied country,” commented Alan Estevez, Under Secretary of Commerce for Industry and Security.
Concerns Over Software Coming From “Adversary” Nations
Earlier this year, Secretary of Commerce Gina Raimondo announced that the department had plans to introduce proposed rules regarding connected vehicles using software from China and “adversary” nations. At the time, Raimondo said the Biden administration could have taken action against affected vehicles by restricting or banning them entirely.
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If you’re unaware, connected vehicles are simply those that can communicate with external systems, using the Internet to share data with various devices. This has many benefits and allows for features such as autonomous driving, remote parking, and vehicle-to-vehicle communication. However, Estevez said the data collected could pose a threat.
Connected Cars Are Great, But They Can Be Dangerous
The Under Secretary said that a car can be a “scary thing” before explaining what he’s worried about. “Your car knows a lot about you. Your car probably gets a software update, whether it’s an electric vehicle or an autonomous combustion engine vehicle. A modern car has a lot of software in it. It’s taking lots of pictures. It has a drive system. It’s connected to your phone. It knows who you call. It knows where you go. It knows a lot about you,” remarked Estevez.
Related
Hyundai Reacts To Potential China-Connected Vehicle Rules
The company is diversifying its supply chain outside of China.
The Biden administration has already imposed a 102% tariff on Chinese-built electric vehicles to protect the American automotive industry from affordable Chinese imports. However, the latest proposal will ensure that even non-Chinese cars with software from China (or other adversary states) would see limitations imposed. It will be interesting to see how this affects Western brands that use software from non-allied countries. All we know is that the Chinese government won’t be pleased. Previously, the nation’s foreign ministry hoped the US would “respect the laws of the market economy and principles of fair competition.”
Source:
Reuters
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