US finalises rule banning Chinese, Russian-linked car technology

The US Department of Commerce on Tuesday announced a final rule banning the sale or import of connected vehicle technologies with ties to China or Russia, citing national security concerns.

The rule, issued by the Bureau of Industry and Security (BIS), targets hardware and software integrated into vehicle connectivity systems (VCS) and automated driving systems (ADS). Officials said such technologies could enable foreign adversaries to extract sensitive data or remotely manipulate vehicles.

“Cars today aren’t just steel on wheels – they're computers,” Commerce Secretary Gina Raimondo said, referring to cameras, microphones, GPS tracking, and other technologies that are connected to the internet.

“Through this rule, the Commerce Department is taking a necessary step to safeguard U.S. national security and protect Americans’ privacy by keeping foreign adversaries from manipulating these technologies to access sensitive or personal information.”

The rule prohibits the import of VCS hardware or connected vehicles using such components, as well as the sale of vehicles with Chinese or Russian-made VCS or ADS software. It also bans US manufacturers from selling vehicles incorporating prohibited technologies, even if produced domestically.

The rule will apply only to passenger vehicles due to what the Commerce Department described as "the complexity of the commercial vehicle supply chain."

“BIS recognizes the acute national security threat presented by foreign adversary involvement in the commercial vehicle supply chain and intends to issue a separate rulemaking addressing the technologies present in connected commercial vehicles – including in trucks and buses – in the near future,” a release said.

The software-related prohibitions will take effect for Model Year 2027, while hardware restrictions will be enforced starting with Model Year 2030.

“Connected vehicles yield many benefits, but software and hardware sources from the PRC and other countries of concern pose grave national security risks,” said National Security Advisor Jake Sullivan.

“President Biden has been clear: we will not hesitate to take needed action to protect the safety of the American people.”

The regulation requires manufacturers and importers to certify compliance through annual declarations and allows for limited exemptions under specific conditions.