The Biden administration has proposed new rules blocking the “sale or import” of connected vehicle software from “countries of concern,” a move that would effectively ban all auto imports into the United States from China.
Vehicles with Chinese hardware and software pose an “acute” threat to US national security. technology-from-countries-of-concern/”>The White House said in a statementThis includes the potential for “sabotage and surveillance, such as remotely disabling a vehicle in the middle of the road.”
The rules would cover everything that connects a vehicle to the outside world, such as Bluetooth, Wi-Fi, cellular and satellite components. They also address concerns that technology such as cameras, sensors and onboard computers could be exploited by foreign adversaries to collect sensitive data on American citizens and infrastructure.
Vehicles with Chinese hardware and software pose an “acute” threat to US national security
The rules stem from an investigation launched earlier this year by the Commerce Department into connected vehicle software produced in China and other countries deemed antagonistic to the U.S. The regulations would force American automakers and suppliers to remove Chinese-made software and hardware from their vehicles in the coming years.
Earlier this month, the Biden administration imposed new tariffs on Chinese imports, including a 100 percent tariff on electric vehicles and new increases on batteries and key minerals made in China.
The proposal is the latest escalation in existing trade restrictions on Chinese-made light vehicles as well as components such as computers and batteries. And it comes at a time when China is producing more cars than ever, earning it the status of the world's largest auto exporter.
In particular, China has cracked the code for cheap and highly affordable electric vehicles, while American and European manufacturers continue to struggle to launch their own models. The BYD SeagullFor example, the Seagull was the country's best-selling vehicle in August, with a range of about 300 kilometers and a retail price of around $10,000. Even with a 100 percent tariff, the Seagull would still sell for much less than most domestically-made electric vehicles.
China has cracked the code for affordable and highly economical electric vehicles
U.S. officials have expressed concern that allowing China to export electric vehicles to the country would devastate domestic manufacturers, a sentiment backed by auto executives. Elon Musk, Tesla's chief executive, has said China would “demolish” the U.S. auto industry without trade barriers, but later backtracked and He said he was opposed to tariffs..
China has previously accused The United States accuses the US of repeatedly abusing the “concept of national security” to unfairly target Chinese companies and impede competition in global markets.
Under the proposed rules, the software ban would take effect starting with the 2027 model year, while the hardware ban would take effect starting with the 2030 model year.
The new rules could end up mirroring provisions similar to those for federal tax credits for electric vehicles, which prohibit the credit from being applied to vehicles with battery components made in China. The administration has also proposed high tariffs on Chinese vehicles in an effort to make them more expensive to sell in the United States.
The Autonomous Vehicle Industry Association, which represents automakers and technology companies working on self-driving cars, praised the Biden administration for taking this stance.
“American national security is paramount,” Jeff Farrah, the group’s executive director, said in a statement. “The autonomous vehicle industry has worked constructively with federal agencies and stakeholders to provide critical information about connected vehicles and how the autonomous vehicle industry is working to ensure national security.”
