Calls for ban on Chinese and Russian software and hardware used in autonomous vehicles on US roads

NEW YORK (AP) — The Commerce Department said Monday it has requested a ban on the sale in the United States of connected and autonomous vehicles equipped with Chinese and Russian software and hardware in an effort to protect national security and U.S. drivers.

While minimal Chinese and Russian software has been distributed in the U.S., the issue is more complicated for hardware. So Commerce officials said the software bans would go into effect for model year 2027, while the hardware bans would go into effect for model year 2030 or Jan. 1, 2029 for non-model year units.

The agency said the measures announced Monday were proactive but critical, adding that microphones, cameras, GPS tracking and Bluetooth technology in vehicles could make Americans more vulnerable to malicious actors and expose drivers’ personal information, from their home addresses to where their children go to school.

In extreme cases, a foreign adversary could stop or simultaneously take control of multiple vehicles operating in the United States, causing crashes and road closures, U.S. Commerce Secretary Gina Raimondo told reporters on Sunday.

“This is not about trade or economic advantage,” Raimondo said. “This is purely a national security action. The good news is that there are not many Chinese or Russian cars on our roads right now.”

But Raimondo said Europe and other parts of the world, where Chinese vehicles are proliferating so quickly, should be a “cautionary tale” for the US

In Europe, where Chinese-made electric cars are rapidly gaining market share, safety concerns have emerged over the extensive software-driven functions in Chinese vehicles.

“The question of who controls these data flows and software updates is not trivial, and the answers to these questions violate national security, cybersecurity and personal privacy issues,” Janka Oertel, director of the Asia Program at the European Council on Foreign Relations, said on the council’s website.

Vehicles have now become “mobility platforms” that monitor driver and passenger behavior and track their environment.

A senior administration official said it was clear from the terms of service agreements included with the technology that data from the vehicles was reaching China.

Raimondo said she would not expect US roads to be filled with Chinese or Russian cars.

“We are releasing a proposed law to address these new national security threats before suppliers, automakers, and auto components with ties to China or Russia become widespread and pervasive in the U.S. auto sector,” Raimondo said.

A senior administration official said it was difficult to know when China might reach that saturation level, but the Commerce Department said China hopes to enter the U.S. market and several Chinese companies have announced plans to enter the automotive software space.

The Commerce Department added Russia to the regulations because the country is trying to “breathe new life into the automotive industry,” senior administration officials said.

The proposed rule would ban the import and sale of vehicles with Russian- and Chinese-made software and hardware that would allow the vehicle to communicate externally via Bluetooth, cellular, satellite, or Wi-Fi modules. It would also ban the sale or import of software components manufactured in Russia or the People’s Republic of China that collectively allow a highly autonomous vehicle to operate without a driver behind the wheel. The ban would also cover vehicles manufactured in the United States that use Chinese and Russian technology.

The proposed rule would apply to all vehicles, but would exclude vehicles not used on public roads, such as agricultural or mining vehicles.

Senior administration officials said trade officials met with all of the major auto companies around the world and also spoke with various industry associations when drafting the proposed rule to better understand supply chain networks.

The Commerce Department invites public comments within 30 days of publication before a rule is finalized. This should occur by the end of the Biden Administration.

The new rule follows steps taken by the Biden administration earlier this month. Crackdown on cheap products sold from China, He expands efforts to reduce U.S. dependence on Beijing and support domestic industry, including on electric vehicles.

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AP Economics Writer David McHugh contributed to this report from Frankfurt, Germany.