U.S. seeks to ban China-made vehicle software and hardware

The U.S. Commerce Department wants to ban tech-based vehicle components made in China and Russia due to concerns that cars equipped with the parts could be a threat to national security.

Driving the news: Prompted by concerns over cybersecurity threats, the proposed measure follows an investigation launched by the Biden Administration in February, assessing the threat that Chinese vehicles pose to national security.

• The investigation uncovered several potential security threats, including hacking, remote sabotage, and the collection of personal data.

The details: 

• The ban would include hardware and software-based vehicle features such as Bluetooth, automated driver systems, and mapping and satellite systems. 

• The proposed banning would start during the 2027 model year for software and 2030 for hardware.  

• Vehicles without a model year would be subjected to the ban starting January 1, 2029.

• If passed, the proposal would force GM and Ford to stop importing vehicles from China.

If passed, U.S. officials contend that the measure would also provide U.S. drivers with added personal security amid the growing number of connected-vehicle technology being integrated into vehicles.

What they’re saying: "We'll secure our cars and we'll secure the American people, including our children, from potential surveillance, remote access and control, and protecting Americans from bad actors and trying to give every American peace of mind," said U.S. Secretary of Commerce Gina Raimondo.

Bigger play: Plans to ban vehicle hardware and software made in China, specifically, come as the U.S. seeks to aggressively thwart the competition of lower-cost Chinese vehicles in the U.S., with a slew of initiatives.

• In May, the Biden Administration announced new tariffs on Chinese-made products imported to the U.S., including 100% duty on electric vehicles and significant hikes on batteries and key minerals used to make EV batteries.    

Why it matters: The proposed ban could have a significant impact on the U.S. auto industry, given that so many facets of the business hinge on the advancements made with connected vehicle technology and the associated costs, from the supply chain to vehicle pricing. 

Last note: U.S. officials will give the public 30 days to comment on the proposed ban, with plans to finalize the measure by Jan. 20.

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