US Proposes Ban on Smart Cars Using Chinese and Russian Tech

The U.S. Commerce Department is set to propose a prohibition on selling or importing smart vehicles that incorporate certain technologies from China or Russia, citing national security risks. This decision follows a U.S. investigation initiated in February, which identified potential threats like remote hacking and data collection on drivers from foreign-made components in vehicles. Commerce Secretary Gina Raimondo highlighted the severe risk of these vulnerabilities being exploited to cause widespread disruption or control of vehicles across the U.S.

The proposed restrictions will apply to smart vehicles from the 2027 model year onwards for software, and from 2030 for hardware. Existing vehicles with the specified foreign technologies will not be affected. The ban emerges amidst broader geopolitical tensions, particularly between the U.S. and China, over securing critical future technology supply chains.

Despite concerns raised by the Chinese government regarding data collection by U.S. vehicles, like Tesla, this move by the U.S. specifically targets the potential for severe misuse of vehicle technology. The Commerce Department’s focus is on “connected vehicles” that use network connections for various functions. The new rule will undergo a 30-day public commentary period, with the department planning to finalize the regulation before the current administration concludes.

Secretary Raimondo emphasized that the measure is a national security action, not economic protectionism. She elaborated on the dangers of personal data exploitation that could leave Americans vulnerable. The administration also plans to release an economic analysis of the rule’s impact on automakers and consumers.

This development is part of the U.S.’s broader efforts to protect its consumers and infrastructure from foreign technology perceived as a security threat. For instance, earlier actions include banning products from Russia’s Kaspersky Lab. The announcement aligns with other White House initiatives to bolster the U.S. auto industry, particularly targeting support for autoworkers in critical states like Michigan, showcasing the administration’s commitment to both national security and domestic manufacturing growth.