If levying more than 100% tariffs on Chinese-made electric vehicles wasn't enough, the Biden administration is now gearing up to propose a ban on Chinese software in autonomous and connected vehicles on US highways, citing national security risks.
Reuters reports the new rule would prohibit Chinese software with Level 3 automation and above on all US roadways. This would also ban all testing of Chinese autonomous vehicles in the US.
The administration, in plans first reported by Reuters, will also propose barring vehicles with Chinese-developed advanced wireless communications abilities modules from US roads, the sources added.
Under the proposal, automakers and suppliers would need to verify that none of their connected vehicle or advanced autonomous vehicle software was developed in a "foreign entity of concern" like China, the sources said. -RTRS
A Commerce Department spokesperson told Reuters that the department "is concerned about the national security risks associated with connected technologies in connected vehicles."
Last month, the Commerce Department said it was planning to issue the new proposed rules on connected vehicles in August and impose software limits on vehicles produced in China and other countries deemed adversaries.
The department's Bureau of Industry and Security said the rule "will focus on specific systems of concern within the vehicle. Industry will also have a chance to review that proposed rule and submit comments."
Earlier this year, President Biden said, "Connected vehicles from China could collect sensitive data about our citizens and our infrastructure and send this data back to the People's Republic of China."
Besides the spying car threat, Chinese EVs imported into the US have been deemed an existential threat to the American auto industry, with the Biden administration proposing more than 100% tariffs. Remember, Biden is controlled by unions, such as the ones in the auto industry, so he must cater to their demands.
US Senator Sherrod Brown (D-OH) wrote in a letter to the president in April:
"The US must ban Chinese electric vehicles now, and stop a flood of Chinese government-subsidized cars that threaten Ohio auto jobs, and our national and economic security."
Looking ahead this week, the White House and State Department will host a meeting with allies and industry leaders to "jointly address the national security risks associated with connected vehicles" on Wednesday. Sources informed Reuters that additional details about the new rule should be unveiled at this week's meeting.
