The US Commerce Department has proposed a ban on the sale and import of smart vehicles equipped with specific Chinese and Russian technology, warning of national security risks.
The department has opened a 30-day public comment period on the proposal, with plans to implement a final regulation before President Joe Biden’s administration comes to an end.
Remote sabotage
The ban, which would take effect for vehicles from the 2027 model year, targets software and hardware that could potentially be used for remote sabotage or the collection of sensitive personal data from drivers.
An investigation launched in February identified significant risks from embedded Chinese and Russian technology, with officials expressing concern about potential hacking threats.
In extreme cases, hostile actors could gain control of vehicles on US roads, according to the department.
The proposed rule would not affect cars already in use but would prevent further integration of this technology in new models.
This regulatory move is part of the broader competition between the US and China to secure control over critical technologies, including semiconductors and AI.
The Chinese Government, which has made considerable investments in the connected car market, has previously expressed concerns about its own domestic data privacy in relation to US-made Tesla (NASDAQ:TSLA) vehicles imported into China.
Vehicles with network connections
The ban applies to smart vehicles that use network connections for various features, such as roadside assistance and satellite communications.
The rule targets technologies like Bluetooth, WiFi and cellular networks, which facilitate communication between vehicles and the external environment.
Alongside the ban, the White House has unveiled initiatives to support autoworkers, particularly in Michigan, a key election battleground state.
These initiatives include financing for small auto suppliers and training programs for electric vehicle charger installation, aimed at boosting the American automobile industry.