If imposing tariffs exceeding 100% on Chinese-made electric vehicles wasn’t sufficient, the Biden administration is now preparing to suggest a ban on Chinese software in autonomous and connected vehicles on US highways, citing national security concerns.
Reuters discloses that the forthcoming rule would forbid Chinese software with Level 3 automation and higher on all American roadways. Furthermore, it would prohibit all testing of Chinese autonomous vehicles in the US.
The administration, as reported by Reuters, will also propose prohibiting vehicles with Chinese-developed advanced wireless communications modules from operating on US roads, sources added.
According to the proposal, automakers and suppliers will be required to confirm that none of their connected vehicle or advanced autonomous vehicle software was created in a “foreign entity of concern” like China, as per the sources. -RTRS
A spokesperson from the Commerce Department informed Reuters that the department “is worried about the national security risks linked to connected technologies in connected vehicles.”
Last month, the Commerce Department announced plans to introduce new proposed regulations on connected vehicles in August and enforce software restrictions on vehicles manufactured in China and other adversarial nations.
The Bureau of Industry and Security of the department stated that the rule “will target specific systems of concern within the vehicle. The industry will also have an opportunity to review the proposed rule and submit feedback.”
Earlier this year, President Biden expressed, “Connected vehicles from China could gather sensitive data about our citizens and our infrastructure and transmit this data back to the People’s Republic of China.”
Aside from the espionage car threat, Chinese EVs imported into the US have been labeled as a significant threat to the American auto sector, leading to the Biden administration proposing tariffs exceeding 100%. It is important to note that Biden is influenced by unions, particularly those in the auto industry, and therefore must accommodate their requests.
Senator Sherrod Brown (D-OH) wrote in a letter to the president in April:
“The US must immediately ban Chinese electric vehicles and prevent a surge of Chinese government-subsidized cars that jeopardize Ohio auto jobs, as well as our national and economic security.”
Looking forward to this week, the White House and State Department will convene a meeting with allies and industry leaders to collectively address the national security risks associated with connected vehicles on Wednesday. Sources have revealed that further details about the new rule will be disclosed at this week’s gathering.
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