The United States has officially banned the sale and importation of connected cars, as well as related hardware and software, from China and Russia.
The move, announced by outgoing President Joe Biden, is aimed at safeguarding national security and user data.
Biden’s last act
The ban, set to roll out gradually starting in 2027, targets both software and hardware for connected vehicles, specifically those produced by Chinese and Russian companies. Notably, the restrictions also apply to connected cars manufactured by Chinese firms within the United States.
The White House has emphasized that this measure is necessary to mitigate potential threats from “hostile actors” who could exploit the technology in connected vehicles to access sensitive data.
Implementation timeline
The regulation will be introduced in two phases:
- 2027: A ban on the sale of software for connected vehicles from Chinese and Russian companies.
- 2030: A broader ban, extending to hardware.
While Chinese-made software developed before the ban’s implementation can still be used, it must not be maintained or updated by Chinese firms. This provides a loophole for US automakers such as General Motors and Ford, which produce or import vehicles from China.
Chinese automakers already face significant hurdles in the US market, including 100% tariffs that severely limit their competitiveness. Some companies have attempted to bypass these barriers by producing vehicles in NAFTA region countries like Mexico, but this route remains complex.
The market share of Chinese automakers in the US is currently negligible. However, the new regulation effectively shuts the door on any future ambitions they might have had for entering the US market.
National security concerns
The White House has reiterated the importance of securing technological supply chains. Connected vehicle systems collect vast amounts of data, making them vulnerable to potential misuse or cyberattacks by foreign governments.
Commerce Secretary Gina Raimondo stated that this measure is critical to preventing millions of Chinese vehicles on US roads from becoming potential security risks.
The current ban applies only to connected vehicles for private use. Commercial vehicles, such as electric buses, are temporarily exempt. This means companies like BYD, which produces electric buses in California, can continue operations for now. However, the Biden administration has indicated its intent to regulate commercial vehicles in the future.
What happens now
With President-elect Donald Trump set to take office, the enforcement and potential expansion of these regulations will depend on the incoming administration. Nonetheless, the decision marks a decisive step by the US in protecting its digital and technological security in the automotive sector.
This ban sends a strong signal about the nation’s priorities and its stance on foreign influence in critical technological infrastructure.
