Car manufacturers say they will need time to find new suppliers
September 22, 2024 at 23:02
- A ban on Chinese software could be enforced from the 2027 model year while a hardware ban may be introduced for 2030.
- The Biden administration has expressed fears about Chinese technologies risking national security.
- The public will have 30 days to comment on the proposed crackdown.
It’s not just Chinese-built electric vehicles that have caught the attention of the Biden administration, as the U.S. Commerce Department is expected to propose banning the use of Chinese software and hardware in connected and self-driving vehicles available in the U.S.
While many key details about the plan remain under wraps, sources claim the regulation would ban the import and sale of vehicles from China with specific communications and automated driving system software/hardware. Regulators are concerned about the collection of data by Chinese companies on motorists in the U.S.
Read: Biden Administration May Ban Chinese Software Used In Self-Driving Vehicles
A potential widescale ban has been on the cards for several months after President Joe Biden ordered an investigation into Chinese automotive technologies in February, sparked by national security concerns.
“China’s policies could flood our market with its vehicles, posing risks to our national security,” Biden said at the time. “I’m not going to let that happen on my watch.”
Reuters understands the proposed ban could be publicized this week, and prohibitions would extend to other adversaries of the US, including Russia. In May, Commerce Secretary Gina Raimondo expressed serious concerns about vehicles in the US using Chinese software or hardware.
“You can imagine the most catastrophic outcome theoretically if you had a couple million cars on the road and the software were disabled,” she said.
Bans on subject software could be enforced in the 2027 model year, while the ban on hardware may take effect in January 2029 or for the 2030 model year. A trade group representing the likes of GM, Toyota, VW, and Hyundai, has said companies will need time to make the necessary software and hardware changes to comply with any ban.
The public will receive 30 days to comment on the proposed ban before the rules are finalized.
A crackdown on software and hardware features from China would follow the Biden administration’s decision to quadruple import tariffs on Chinese-made EVs from 25% to 100%.
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