NEW YORK: The US Department of Commerce proposed a new national security initiative on Monday that would ban China-derived software in internet-connected cars in the United States. If enacted, the rule would focus on vehicles that can collect data from drivers and passengers and information on US infrastructure.

The rule would prohibit importing or selling systems designed, developed, manufactured, or supplied by “entities” deemed to have a close connection to China or Russia. The ban would include imports and sales of vehicles using those countries’ connectivity features such as Bluetooth, cellular, satellite, and Wi-Fi. If adopted, it would go into effect starting with model year 2027 vehicles.

A second proposed ruleset would ban imports and sales of vehicles with automated driving hardware from China or Russia. This would go into effect with the 2030 model year or January 1, 2029, for units without a model year. This ban would apply to all wheeled vehicles on public roads, including cars, trucks, and buses, but would exclude vehicles not used on public roads such as those for agriculture. It would ban self-driving technology components made in Russia or China from being imported and used, and would also ban vehicles that use Russian or Chinese technology even if the vehicles are made in the US

It’s unclear exactly how the proposed rules would impact automakers such as Volvo, which is majority owned by the Chinese conglomerate Geely Holding but produces vehicles around the world—including in the United States.

The Biden administration’s Commerce secretary, Giana Raimondo, spoke to reporters on Sunday. The New York Times reported that she said the administration’s intention is to “secure the American people, including our children, from potential surveillance.” Raimondo expressed the concern that foreign intelligence agencies could use the software to collect data on where drivers live, where their children go to school, or other sensitive information or could even have the capability to immobilize vehicles.

The Times suggested that the rule could go into effect before President Biden leaves office in January 2025. The Commerce Department is expected to announce a 30-day public comment period that would precede the rule’s adoption. The proposed rule can be found on the federal register here.

Agencies

Agencies