Biden Administration Plots to Ban Specific Chinese Imports

The Biden administration plans to ban Chinese-made vehicles over security concerns, citing risks of data collection and potential foreign manipulation.

At a Glance

U.S. Commerce Department to propose ban on Chinese software and hardware in connected and autonomous vehicles
Concerns over data collection on U.S. drivers and infrastructure by Chinese companies
Proposed regulation to ban import and sale of vehicles from China with key communications or automated driving system technology
Ban part of ongoing U.S. restrictions on Chinese vehicles, software, and components
Prohibitions to take effect in 2027 for software and 2029/2030 for hardware

Biden Administration Takes Action Against Chinese Vehicle Technology

The U.S. Commerce Department is set to propose a ban on Chinese-made software and hardware in connected and autonomous vehicles, citing national security concerns. This move is part of the Biden administration’s broader effort to protect American interests and infrastructure from potential threats posed by foreign adversaries.

The proposed regulation would prohibit the import and sale of vehicles from China that contain key communications or automated driving system technology. This action is a response to growing concerns about data collection by Chinese companies on U.S. drivers and infrastructure, as well as the potential for foreign manipulation of connected vehicles.

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Proposed phased-in regulations would… pic.twitter.com/hboEVAZ97F

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Scope and Timeline of the Proposed Ban

The prohibitions outlined in the proposal are extensive, covering vehicles with certain Bluetooth, satellite, and wireless features, as well as highly autonomous vehicles. The ban would apply to all vehicles on U.S. roads, with exceptions for agriculture and mining vehicles. The timeline for implementation is set for the 2027 model year for software and January 2029 or the 2030 model year for hardware.

Commerce Secretary Gina Raimondo has emphasized the significant risks associated with Chinese software or hardware in connected U.S. vehicles. “You can imagine the most catastrophic outcome theoretically if you had a couple million cars on the road and the software were disabled,” she said. The administration’s concerns extend beyond China, with the prohibitions also applying to other foreign adversaries, including Russia.

Industry Response and Challenges

Major automakers have voiced concerns about the proposed changes, warning that altering hardware and software would require significant time due to extensive pre-production processes. The industry has noted that their systems “undergo extensive pre-production engineering, testing, and validation processes and, in general, cannot be easily swapped with systems or components from a different supplier.”

The Commerce Department plans to allow a 30-day public comment period before finalizing the rules, providing an opportunity for industry stakeholders and the public to voice their concerns and suggestions. This process aims to ensure that the final regulations strike a balance between national security interests and the practical realities of the automotive industry.

Broader Context and International Implications

This proposed ban is part of a larger strategy by the Biden administration to address potential security risks posed by Chinese technology. It follows recent actions such as imposing steep tariff hikes on Chinese imports, including a 100% duty on electric vehicles and new hikes on EV batteries and key minerals.

The move also aligns with international concerns about Chinese technology and subsidies in the automotive sector. The European Union, for instance, is investigating Chinese subsidies for electric vehicles due to rising imports. As the global automotive industry becomes increasingly connected and autonomous, the security implications of vehicle technology are likely to remain a significant focus for governments worldwide.