US Bans Chinese, Russian Tech in New Smart Cars
The Biden administration has finalized a rule effectively banning new personal smart cars containing certain Chinese and Russian technology from American roads, citing national security concerns, Bloomberg reports.
The move also lays the groundwork for President-elect Donald Trump to potentially extend these restrictions to commercial vehicles.
The US Commerce Department’s Bureau of Industry and Security (BIS) announced the final rule Tuesday, stating that technologies from China and Russia pose an “undue and unacceptable risk to US national security.” Officials highlight that modern connected vehicles, which rely on internet connectivity, function as mobile computers. This makes them vulnerable to potential data collection infringements on consumer privacy and remote manipulation by foreign adversaries.
The new rule prohibits the import or sale of connected vehicles that contain specific hardware or software with a “sufficient nexus” to China or Russia. It also bans the sale of these components separately, as well as barring manufacturers with links to either country from selling US-made vehicles within the United States.
The finalized rule applies exclusively to passenger vehicles weighing 10,000 pounds or less, with some restrictions taking effect as early as the 2027 model year and others as late as 2030. This phased approach aims to allow manufacturers time to adjust their supply chains and production processes.
The Commerce Department has also announced plans to initiate a separate process targeting commercial vehicles such as buses and trucks. However, the decision to finalize and implement these additional restrictions would fall to the incoming Trump administration.
The move comes as the Biden administration is pushing to complete action on several key initiatives, particularly those concerning China, before President-elect Trump assumes office on January 20. This includes launching a probe that could potentially lead to new tariffs on Chinese semiconductor chips.
