The U.S. Commerce Department plans to ban Chinese software and hardware in cars due to national security concerns. Two sources told Reuters about the proposal. The government fears Chinese companies will collect data and potentially control internet-connected vehicles.
This ban targets Chinese vehicles with critical communication or driving systems. It escalates U.S. restrictions on Chinese technology. Last week, the U.S. imposed steep tariffs on Chinese electric vehicles and batteries. Commerce Secretary Gina Raimondo warned about the risks if Chinese software in many cars gets disabled.
In February, President Biden ordered a review of Chinese car imports to assess security threats. He promised to prevent China from flooding the U.S. market with risky vehicles. The public will have 30 days to comment before the rules are finalized. The software ban could start in 2027, with the hardware ban following in 2030.
The ban affects Bluetooth, satellite, and autonomous driving features. It also applies to other adversaries like Russia. Automakers say they need time to change systems. The White House has already approved the rule, which secures the U.S. vehicle supply chain. It does not apply to farm or mining vehicles.
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