US bans Chinese car tech on security fears, GM, Ford to halt exports
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The news: The US Commerce Department proposed a rule to ban the sale or import of Chinese and Russian “connected vehicles” on national security grounds.
The rule, targeting Vehicle Connectivity Systems (VCS) and Automated Driving Systems (ADS), would apply to all such tech in on-road vehicles from model year 2027 for software and 2030 for hardware.
The ban will impact US automakers, with General Motors (GM) and Ford needing to halt vehicle exports from China to the US. Both companies have models currently assembled in China. Production for the US market would have to be moved elsewhere.
The rule excludes vehicles not used on public roads like agricultural or mining vehicles, the department said.
The context: The plan mirrors the previous ban on Huawei equipment and TikTok scrutiny, with tariffs on Chinese electric vehicles already quadrupling to 100% earlier this year.
Few Chinese or Russian vehicles are on US roads, but the administration wants to prevent future surveillance threats.
What they said: “Cars today have cameras, microphones, GPS tracking and other technologies connected to the internet. 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 US citizens,” Secretary of Commerce Gina Raimondo said in a statement.
“To address these national security concerns, the Commerce Department is taking targeted, proactive steps to keep PRC and Russian-manufactured technologies off American roads.”
National Security Adviser Jake Sullivan said, “The US government is taking strong action to protect the American people, our critical infrastructure and automotive supply chains from the national security risks associated with connected vehicles produced by countries of concern.
“While connected vehicles yield many benefits, the data security and cybersecurity risks posed by software and hardware components sourced from the PRC and other countries of concern are equally clear, and we will continue to take necessary steps to mitigate these risks and get out ahead of the problem.”
The Alliance for Automotive Innovation, representing major automakers such as GM, Toyota, Volkswagen and Hyundai, was cited by Reuters as saying some manufacturers might need more time to comply. The group said there was very little connected vehicle hardware or software "that enters the US from China. But this rule will require auto manufacturers in some cases to find alternate suppliers."
Chinese Foreign Ministry spokesperson Lin Jian called on Washington to "respect market principles" and offer Chinese companies a business environment that is transparent, fair and free from discrimination. “China will firmly safeguard its legitimate rights and interests,” he said.
The sources: US Commerce statement , Reuters
