United States. The U.S. Commerce Department has proposed new rules that would ban connected vehicle hardware and software made in China and Russia, in an effort to strengthen national security in the face of hacking threats that the department calls "very real."
These measures seek to protect vehicles that use external communication through Wi-Fi, Bluetooth, and cellular systems, which are increasingly common in the automotive industry. Officials warn that these systems are vulnerable to foreign interference, which could result in serious disruptions.
"This is not about trade. It is a national security action," said Secretary of Commerce Gina Raimondo. The proposal, which could ban virtually all Chinese vehicles in the U.S., comes against a backdrop of accusations of unfair subsidies by the Chinese government, which distort the global market.
Connected vehicles, deeply integrated into U.S. infrastructure, pose specific risks, as National Security Adviser Jake Sullivan warned. "Today's cars have technologies that could be exploited by foreign adversaries," Raimondo said.
The Commerce Department has been in talks with industry experts about cybersecurity concerns related to so-called smart cars. The new restrictions would include both software and hardware, with a phased rollout starting in 2027 for software and 2030 for hardware.
The administration has also imposed a 100% tariff on Chinese electric vehicles, intensifying pressure on the auto industry. China, a leader in the electric vehicle sector, has seen BYD Co. overtake Tesla in sales in the final quarter of last year, raising concerns in the U.S. about its dependence on Chinese suppliers.
White House top economic adviser Lael Brainard stressed the need to protect the auto sector from unfair trade actions, noting that the Detroit area has lost more than 55,000 manufacturing jobs since 2001 due to competition from Chinese imports.
"Americans should be able to choose the car they want, but we want electric vehicles to be made in America, not China," Brainard concluded. The proposed restrictions are expected to be formalized in January, following a 30-day comment period.
