New Rules Crack Down on Chinese and Russian Tech in Connected Cars
As President-elect Donald Trump prepares to take office, the Biden administration has finalized new regulations to curb the use of Chinese- and Russian-made technology in connected cars. The move aims to address the “unacceptable risk” these technologies pose to US national security.
Undue Risk to National Security
The Commerce Department’s Bureau of Industry and Security (BIS) and the Office of Information and Communications Technology and Services (OICTS) have identified certain technologies used in connected car features, such as internet connectivity and automated driving systems, as a threat to national security. These technologies, found in cars made in China and Russia, will be prohibited from sale or importation in the US.
Prohibitions Take Effect
The new rule will come into effect in phases. Software-related prohibitions will take effect for model year 2027, while hardware-related prohibitions will take effect for model year 2030 or January 1, 2029, for units without a model year. Additionally, prohibitions on the sale of connected vehicles by manufacturers with ties to China or Russia will take effect for model year 2027, even if manufactured in the US.
Protecting Americans
National Security Adviser Jake Sullivan emphasized the importance of safeguarding critical infrastructure and the automotive supply chain. “Connected vehicles yield many benefits, but software and hardware sources from the PRC and other countries of concern pose grave national security risks,” he said.
Industry Collaboration
OICTS worked closely with automotive companies, suppliers, and stakeholders to develop the new rules, which were proposed last March. The Alliance for Automotive Innovation (AAI) trade group, representing several automakers, has expressed support for the final rule, acknowledging the need for a balanced approach to address national security risks while allowing time for supply chain adjustments.
Impact on Automakers
The new rules will affect automakers such as GM, Ford, and Volvo, which manufacture vehicles in China that incorporate the prohibited technologies. However, the AAI has praised the administration’s efforts to strike a balance between national security concerns and the need for a gradual transition.
Broader Crackdown on Adversarial Tech
The Biden administration has been taking a tough stance on technologies that intersect with China and other adversaries. Yesterday, the administration released an updated export rule aimed at controlling the flow of AI chips to “adversaries” such as China. This move is part of a broader effort to protect US national security and critical infrastructure.
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