Chinese car software to be banned under new White House proposal

The Biden Administration is expected to propose a ban on automotive software and technology developed by Chinese companies as early as this month.

Driving the news: The proposal will focus on both autonomous vehicles and connected vehicles, according to Reuters, which broke the story early this morning. Here’s what the bill calls for:

• Vehicles capable of Level 3 self-driving that use China-made software would be banned under the new legislation. This would also prevent companies from testing such cars on U.S. roads.

• Cars sold with wireless communication technology made in China would also be prohibited.

• Manufacturers would be required to prove their software was made independently from China or another “foreign entity of concern.”

Between the lines: Last week, the U.S. State Department met with automotive leadership and representatives from other countries to discuss its new plans for restricting software. Leading up to the meeting, government officials had grown increasingly alarmed over the Chinese car industry’s rapid expansion overseas.

• Last November, a group of U.S. lawmakers discovered that Chinese companies had conducted 450,000 miles in test drives in California over the course of 12 months.

• Transportation Secretary Pete Buttigieg also raised security concerns over autonomous vehicle testing in the U.S. in June.

• Meanwhile, the White House has expressed concerns that wireless technology could be used to collect data on U.S. citizens.

Bottom line: Currently, there are no Chinese vehicles sold in the U.S., autonomous or otherwise. But even with aggressive tariffs and legislation in place, there’s no guarantee this blockade will last. And while lawmakers continue to debate the issue, international automakers continue to see weaker sales in China as the country’s domestic brands recapture market share.

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