According to Reuters, sources reveal that the U.S. Department of Commerce is expected to propose a ban on the use of Chinese software in autonomous and connected vehicles in the coming weeks.
The Biden administration plans to issue a proposed regulation prohibiting the use of Chinese software in Level 3 and higher autonomous vehicles in the United States, as well as banning the testing of autonomous vehicles produced by Chinese companies on U.S. roads.
Sources added that the U.S. government also plans to propose banning vehicles equipped with advanced wireless communication modules developed in China from operating on U.S. roads.
Under the proposal, automakers and parts suppliers would need to verify to the U.S. government that their connected vehicles or advanced autonomous vehicle software were not developed in China or by other "foreign entities of concern."
Last month, the U.S. Department of Commerce stated its intention to release proposed rules on connected vehicles in August, which are expected to impose restrictions on some software made in China and other countries deemed adversaries.
When asked for comment, a spokesperson for the U.S. Department of Commerce stated on August 4 that the department is "concerned about the national security risks posed by connected technology in connected vehicles." The Bureau of Industry and Security, under the Department of Commerce, will issue a proposed rule "focusing on specific systems within vehicles." The U.S. automotive industry will also have the opportunity to review and comment on the proposed rule.
Recently, the White House and the U.S. Department of State held a meeting with allies and industry leaders to discuss "collective measures to address national security risks associated with connected vehicles." Officials from the U.S., Australia, Canada, the EU, Germany, India, Japan, South Korea, Spain, and the UK participated in the meeting, where they exchanged views on data and cybersecurity risks related to connected vehicles and certain components.
In November last year, a group of U.S. lawmakers warned about the collection and processing of sensitive data by Chinese companies testing autonomous vehicles in the U.S., and questioned ten major companies, including Baidu, NIO, WeRide, DiDi, XPeng, Inceptio, Pony.ai, AutoX, Deeproute.ai, and QCraft.
The letter noted that in the 12 months leading up to November 2022, Chinese autonomous vehicle companies test-drove over 450,000 miles in California. The U.S. Department of Transportation expressed concerns about the national security risks posed by Chinese autonomous vehicles testing in the U.S., stating that connected vehicles using driver monitoring systems could listen to or record passengers or control the vehicles themselves.
"This poses significant national security risks," U.S. Commerce Secretary Gina Raimondo stated in May, "and therefore we decided to take action."
The Chinese Embassy in Washington did not immediately comment on the report, but the Chinese Ministry of Foreign Affairs previously urged the U.S. to "respect market economy rules and principles of fair competition." They noted that Chinese cars are popular globally due to their competitive edge and technological innovation in a highly competitive market.
