US Proposes Ban on Smart Vehicles Using Chinese, Russian Tech, Alleging National Security Risks

The US Commerce Department will propose a ban on the sale or import of smart vehicles utilizing specific Chinese or Russian technology over allegations of national security concerns, CNN reports.

This move comes after a US government investigation, launched in February, claimed to have uncovered various national security risks associated with embedded software and hardware from China and Russia in US vehicles.

“In extreme situations, a foreign adversary could shut down or take control of all their vehicles operating in the United States, all at the same time, causing crashes (or) blocking roads,” Secretary of Commerce Gina Raimondo said.

The proposed rule, affecting “connected vehicles” – modern cars, buses, and trucks that utilize network connections – would prohibit hardware and software interacting with key communication technologies like Bluetooth, WiFi, and cellular technology. The ban, however, wouldn’t affect vehicles already on US roads equipped with Chinese software.

This proposed ban will take effect for “model year” 2027 for software and “model year” 2030 for hardware.

This action is part of a broader struggle between the US and China, the world’s two largest economies, to secure critical computing technology supply chains, from semiconductors to AI software. China’s significant investments in the connected car market and the inroads made by Chinese manufacturers in Europe have raised concerns for US officials.

The Commerce Department’s proposal will be subject to a 30-day public comment period. The department intends to finalize the regulation before the end of the Biden administration. The Biden administration will also release an economic analysis of the potential costs for automakers and consumers to comply with the proposed rule.

This move follows a similar ban imposed on Russian cybersecurity firm Kaspersky Lab in June, where the Commerce Department banned the sale and provision of certain products and services due to allegations of national security concerns. Kaspersky Lab’s anti-virus software is used by hundreds of millions of people around the world.

The Chinese government has denied US allegations of hacking into US infrastructure and denounced the US actions as discriminatory, calling for a fairer business environment.