NEW YORK: The US Commerce Department moved on Monday to ban the sale of connected vehicles incorporating Chinese and Russian technology, citing national security risks.
The proposed rule is part of President Joe Biden’s hardening approach to the world’s second-biggest economy and comes after an announcement in February of a probe into security risks posed by Chinese tech in cars. Electronics are increasingly integrated into modern cars, which can connect to personal devices, other vehicles, US infrastructure and their manufacturers — including electric and self-driving cars.
The rule unveiled Monday by the Department of Commerce covers the software and hardware that connect vehicles to the outside world. “Malicious access to these systems could allow adversaries to access and collect our most sensitive data and remotely manipulate cars on American roads,” the department’s Bureau of Industry and Security said in a statement announcing the measures, raising the terrifying prospect of hackers taking control of vehicles while they are being driven.
The government did not specify which manufacturers or models are likely to be impacted by the rule, which will be open for public comment for 30 days. Responding to reports of the ban ahead of its announcement, China warned the United States on Monday against taking “discriminatory actions” against its firms. “China opposes the US’ broadening of the concept of national security and the discriminatory actions taken against Chinese companies and products,” foreign ministry spokesman Lin Jian said when asked about the reports.
The American Automotive Policy Council (AAPC), which represents the three industry giants General Motors, Ford and Stellantis, did not immediately respond when contacted by AFP.
The Biden administration announced this month a 100-percent duty on Chinese electric vehicles and other tariff hikes worth billions of dollars. Both moves also triggered fiery responses from Beijing. There are no Chinese-brand vehicles on sale in the United States today. There is also the question of vehicles assembled in the United States but using Chinese parts. A preliminary US study showed there was “minimal Chinese and Russian software” in homegrown supply chains, an official told reporters on condition of anonymity.
The hardware supply chain is “slightly more complicated” as there is more Chinese equipment in circulation, which will likely see a need for new suppliers. As a result, the proposed ban on hardware would not be in place before 2029, to give the industry time to adapt—while the software ban could take effect by as early as 2027.
“Cars today have cameras, microphones, GPS tracking, and other technologies connected to the internet,” Commerce Secretary Gina Raimondo said in the statement.
“It doesn’t take much imagination to understand how a foreign adversary with access to this information could pose a serious risk to both our national security and the privacy of US citizens,” she said. That is why the United States is taking “targeted, proactive steps to keep PRC and Russian-manufactured technologies off American roads,” she added, using an acronym for the People’s Republic of China. US trade policy is one of the key issues in the White House race, which pits Republican Donald Trump against Democratic Vice President Kamala Harris in the November vote.
Trump took an aggressive stance against China during his presidency, introducing tariffs on imports of Chinese-made products. Biden has essentially maintained those measures—while also restricting exports to China of technology such as semiconductors and the machinery used to manufacture them.
The aim is to limit Chinese companies’ access to cutting-edge equipment purchased abroad, particularly for military purposes. — AFP
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