The Biden administration finalized a new rule that would effectively ban all Chinese vehicles in the US under the auspices of blocking the “sale or import” of connected vehicle software from “countries of interest.” The rule could have wide-ranging effects on large automakers, like Ford and GM, as well as smaller manufacturers like Polestar, and even companies that don't make cars, like Waymo.
The rule covers everything that connects a vehicle to the outside world, such as Bluetooth, Wi-Fi, cellular and satellite components. It also addresses concerns that foreign adversaries could exploit technologies such as cameras, sensors and onboard computers to collect sensitive data on American citizens and infrastructure. And it would prohibit China from testing its autonomous vehicles on US soil.
“Today's cars have cameras, microphones, GPS tracking and other Internet-connected technologies,” US Commerce Secretary Gina Raimondo said in a statement. “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 American citizens. “To address these national security concerns, the Department of Commerce is taking proactive and targeted steps to keep (PRC) and Russian-made technologies off American roads.”
“A foreign adversary with access to this information could pose a serious risk”
The rules for banned software go into effect for 2027 model year vehicles, while China's hardware ban waits until 2030 model year vehicles. According ReutersThe rules were updated from the original proposal to exempt vehicles weighing more than 10,000 pounds, which would allow companies like BYD will continue assembling electric buses in California.
The new rule is the latest escalation in current trade restrictions imposed on Chinese-made vehicles, including components such as computers and batteries. It comes at a time when China is producing more cars than ever, earning itself the status of the world's number one car exporter. The standard also covers vehicles and components manufactured in Russia.
China's access to vehicle software presents “a significant threat” to the United States, as it would grant an adversary “unlimited access” to critical technology systems and the user data they collect. <a target="_blank" href="https://www.whitehouse.gov/briefing-room/statements-releases/2025/01/14/fact-sheet-safeguarding-america-from-national-security-risks-of-connected-vehicle-technology-from-china-and-russia/”>the White House said.
“As (People's Republic of China) automakers aggressively seek to increase their presence in the US and global automotive markets, through this final rule, President Biden is fulfilling his commitment to secure critical US supply chains and protect our national security,” the administration said. duck.
The new rule is the latest escalation in current trade restrictions imposed on vehicles made in China.
The auto industry attempted to delay the rule by a year, effectively sending it to the incoming Trump administration for enforcement, but was unsuccessful. The Automotive Innovation Alliance, which represents GM, Ford, Volkswagen, Toyota and others, said in comments filed last April that it supports the goal of the proposed rules, but warned that the global automotive supply chain “is one of the larger and more complex” and that the pieces could not simply be interchanged without interruptions.
Other automakers were more explicit in their criticism. Polestar, an electric vehicle maker owned by Geely, said in October that the rule would “effectively prohibit Polestar from selling its cars in the United States, including cars it makes in South Carolina.”
In fact, the White House states in its fact sheet that the rule prevents the import or sale of connected vehicles “by entities that are owned, controlled, or subject to the jurisdiction or direction of the People's Republic of China or Russia, even if Those vehicles were made in the United States.”
Meanwhile, Waymo, which plans to use vehicles made by Geely's Zeekr for its next-generation robotaxi, said it takes precautions to ensure the vehicles it buys for its fleet arrive without any manufacturer-installed telematics systems. Still, the rule could significantly disrupt the Alphabet-owned company's expansion plans if the government decides to ban the import of the Zeekr vehicle under the new rule.
Spokespeople for Polestar and Waymo did not immediately respond to requests for comment.
