Joe Biden plans to ban all Chinese electric cars in America

Joe Biden is keeping a close eye on plans to ban all Chinese electric cars in America.

The U.S. Commerce Department proposed on Monday to ban the use of key Chinese software and hardware in connected vehicles on American roads, citing national security concerns. The move would effectively ban nearly all Chinese cars from entering the U.S. market.

The planned regulation, first reported by Reuters, would force American and other major automakers to remove key Chinese software and hardware from their vehicles in the United States in the coming years.

The Biden administration has raised serious concerns about Chinese companies collecting data on U.S. drivers and infrastructure through connected vehicles, as well as the possibility of foreign manipulation of vehicles connected to the internet and navigation systems.

The White House ordered an investigation into possible risks in February.

The bans would bar Chinese automakers from testing driverless vehicles on U.S. roads and would also cover vehicle software and hardware made by other U.S. foreign rivals, including Russia.

“When foreign adversaries develop software to build a vehicle, that means that vehicle can be used for surveillance, that means that vehicle can be controlled remotely, and that threatens the privacy and safety of Americans on the road,” Commerce Secretary Gina Raimondo said at a briefing.

“In an extreme case, a foreign adversary could simultaneously shut down or take control of all vehicles operating in the United States, causing accidents and road closures.”

The move is a significant escalation in the U.S.’ ongoing restrictions on Chinese vehicles, software and components. Earlier this month, the Biden administration imposed steep tariff hikes on Chinese imports, including a 100% tariff on electric vehicles and new hikes on EV batteries and key minerals.

There are relatively few Chinese-made cars or light-duty trucks imported into the United States. But Raimondo said the department is taking action “before suppliers, automakers and auto components with ties to China or Russia become common and widespread in the U.S. auto industry… We will not take action until our roads are full of cars and the risk is extremely significant.”

Nearly all new cars and trucks are considered “connected,” with onboard networking hardware that allows internet access, allowing data sharing with devices inside and outside the vehicle.

A senior administration official confirmed that the proposal would effectively ban all existing Chinese light commercial vehicles and pickup trucks from the U.S. market, but added that it would allow Chinese automakers to obtain “special permits” for exemptions.

White House National Security Advisor Jake Sullivan also said at the same briefing that the US has sufficient evidence that China has planted malware on critical American infrastructure.

“There are potentially millions of vehicles on the road, each with a lifespan of 10 to 15 years. That significantly increases the risk of disruption and sabotage,” Sullivan said.

China’s Embassy in Washington last month criticized China’s plan to limit vehicle exports to the US, saying: “China urges the US to sincerely abide by market principles and international trade rules and create a level playing field for companies from all countries.

China will resolutely defend its legitimate rights and interests.”

The proposal calls for the software bans to go into effect starting with model year 2027, while the hardware bans would go into effect starting with model year 2030 or in January 2029.

The Commerce Department is giving the public 30 days to comment on the proposal and hopes to have it finalized by Jan. 20.

The rules will apply to all road vehicles, but will exclude agricultural and mining vehicles not used on public roads.

The Alliance for Automotive Innovation, a group representing major automakers including General Motors, Toyota, Volkswagen and Hyundai, warned that hardware and software changes will take time.

The group said connected car hardware and software are developed around the world, including in China, but did not provide details on how common Chinese-made components are in U.S. models.