US proposes ban on Chinese auto parts so cars ‘cannot be used against us’

The U.S. Commerce Department on Monday proposed a national security ban on certain Chinese- and Russian-made auto parts from U.S. roads starting in 2027. The proposed rule comes after President Biden ordered an investigation in February into whether Chinese vehicles pose a national security risk.

If the ban goes into effect, the focus will be on driverless systems and hardware and software such as Bluetooth and satellite modules that connect vehicles to the outside world.

“We’ve seen ample evidence that (China) has pre-emptively planted malware in critical infrastructure,” national security adviser Jake Sullivan said on a call with reporters. “And with potentially millions of vehicles with a lifespan of 10 to 15 years each, the risk of disruption and sabotage on the roads increases significantly.”

Earlier this year, FBI Director Christopher Wray warned China is reportedly targeting American water treatment plants, pipelines and power grids, Congress has heard.

Beyond national security, Sullivan said the ban would provide additional personal security for U.S. drivers. While cars collect geolocation, audio and video data — Chinese and Russian software and hardware can’t be trusted, Sullivan said.

U.S. Commerce Secretary Gina Raimondo described the proposed ban, issued by her department’s Bureau of Industry and Security team, as a “proactive” step given that there are currently “very few Chinese cars” on U.S. roads.

According to Business Insider, 104,000 Chinese-made cars were sold in the US in 2023, representing a 45% increase from the previous year.

“We will secure our cars and protect the American people, including our children, from potential surveillance, remote access and control. We will protect Americans from malicious actors and work to provide peace of mind to every American,” Raimondo said during the meeting.

Raimondo also cited Europe as a “cautionary tale”, with one study finding that there are an estimated 500,000 Chinese-made cars on European roads. report From Jato Dynamics, a company that studies the industry. And this summer, a separate reportChinese automakers outsold their U.S. rivals in total sales, selling 13.4 million vehicles, while the U.S. sold 11.9 million, Jato said.

Despite the economic impact of the proposed rule, Raimondo said it was not a driving force.

“This is not about trade or economic advantage,” Raimondo said. “This is purely a national security action.”

However, Biden’s national economic advisor, Lael Brainard, noted the economic impact this rule would have on American workers.

“The Biden-Harris administration believes the future of the auto industry is built by American workers in America, and today’s announcement ensures Americans can drive the car they want safely and securely, free from the risks posed by Chinese technology,” Brainard said.

Biden in May collected China imposes 100% tariff on electric vehicles.

“I am determined that the future of electric vehicles is made in America by unionized workers. Period,” Biden said.

The Commerce Department will give the public 30 days to comment before finalizing the rule. It then plans to begin banning Chinese and Russian auto software starting in model year 2027. The hardware ban would begin in 2029.

“Our plan is to have that final rule out before the end of this administration,” a senior administration official said on the call. “So, hopefully we can get that done.”