US Set to Propose Ban on Chinese Software and Hardware in Connected Vehicles

According to sources as reported by Reuters, the U.S. Commerce Department is anticipated to announce a proposal on Monday that would forbid the use of Chinese software and hardware in connected and autonomous vehicles operating on U.S. roads, citing national security worries.

The Biden administration has expressed alarm over Chinese companies’ data collection practices involving American drivers and infrastructure, as well as the potential foreign interference with connected vehicles.

The suggested regulation aims to prohibit the import and sale of vehicles from China that contain essential communications or automated driving system software or hardware.

Sources revealed that the department intends to allow a 30-day period for public commentary before finalizing the regulations.

It was also disclosed that the proposed restrictions are intended to become effective starting from the 2027 model year, with the hardware prohibitions slated to take effect in January 2029. Meanwhile, the Commerce Department abstained from providing comments on Saturday.