US Proposes Ban On Chinese, Russian Connected Car Tech Over Security Fears

The US Commerce Department has decided not to wait for the inevitable, and today announced plans that would ban connected vehicle technology - and vehicles using it - from Chinese and Russian sources.

In an announcement today, the Bureau of Industry and Security (BIS) said that it was proposing a rule that would prohibit the import and sale of vehicle connectivity system (VCS) or automated driving system (ADS) hardware or software made by a manufacturer "with a nexus to [China] or Russia." The proposed rule would also ban the incorporation of VCS or ADS tech from China or Russia in vehicles manufactured within the US.

If passed as written, the rule would eliminate vehicles equipped with Chinese automotive tech from operating on US roads - even if it was just for testing purposes, per the proposal. The reason for the ban, if it isn't obvious at first glance, is due to the potential for such connected vehicle technology to enable China to spy on the US - an issue the Biden administration first pointed out in February when it ordered the Commerce Department to look into the matter. 

"China imposes restrictions on American autos and other foreign autos operating in China," President Biden said earlier this year. "Why should connected vehicles from China be allowed to operate in our country without safeguards?"

Now more than ever, vehicles are directly connected into our country's digital networks

According to the White House, the Commerce Department investigation has since revealed the potential for connected vehicle technology to do exactly what it was worried about, with China and Russia cited as "particularly acute threats." 

"These technologies include computer systems that control vehicle movement and collect sensitive driver and passenger data as well as cameras and sensors that enable automated driving systems and record detailed information about American infrastructure," the White House said in a statement. "Now more than ever, vehicles are directly connected into our country's digital networks."

It would be a simple matter, the administration reasoned, for a foreign company in a nation like China or Russia, where governments "compel companies subject to their jurisdiction … to cooperate with security and intelligence services," according to the proposed rule.

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"It doesn't take much imagination to understand how a foreign adversary with access to this information could pose a serious risk to both our national security and the privacy of US citizens," Commerce secretary Gina Raimondo said. "To address these national security concerns, the Commerce Department is taking targeted, proactive steps to keep PRC and Russian-manufactured technologies off American roads." 

Since it's still a proposal, the rule could still change considerably before being enacted. Once it takes effect, the software provisions would apply to all vehicles starting with model year 2027, and hardware restrictions would go into effect beginning with model year 2030. Units without a model year would be banned starting in January, 2029. 

As we noted in our earlier coverage of the Biden Administration's looming ban on Chinese vehicle technology, there aren't any Chinese-branded vehicles on the roads in the US right now, making the ban a preemptive one. 

That said, there are a number of US automakers that make vehicles in China for sale in the US market. The Commerce Department hasn't answered our questions regarding how those vehicles would fit into the law, but there is a provision in the proposed rules by which manufacturers can apply for an exemption. 

Along with a ban on connected vehicle technology import and sales, the Biden Administration raised tariffs on Chinese-manufactured electric vehicles from 25 percent to 100 percent in May; China has vowed retaliation. ®