Posted on 16 Jan 2025
The White House announced on 14 January the final rule on the US ban on the sale and import of connected vehicle hardware and software systems from China and Russia.
The issue of a final rule on connected vehicle supply chains concludes a “fact-finding and regulatory process” that Biden launched last year, the US government says. Connected vehicles owned by, controlled by, or subject to the jurisdiction or direction of China or Russia will be banned even if the cars are made in the US.
Restrictions on software will take effect for Model Year 2027 and restrictions on hardware will take effect for Model Year 2030, Kallanish reports.
“The US has restricted the use of Chinese connected car software and hardware and complete vehicles in the US on the grounds of so-called national security, which is totally unfounded,” states Guo Jiakun, spokesperson of China’s foreign ministry. “The relevant practice interferes with the economic and commercial cooperation of enterprises, violates the principles of market economy and fair competition, and is a typical protectionism and economic coercion. China firmly opposes this.”
Washington claims that foreign involvement in the supply chain of connected vehicles could be hostile as it is likely to threaten the safety of most cars on the road by granting malign access to these connected systems and their data. It points out that some data, such as geolocation, audio and video recordings could be sensitive and contain pattern-of-life analysis.
“As PRC [People’s Republic of China] automakers aggressively seek to increase their presence in American and global automotive markets, through this final rule, President Biden is delivering on his commitment to secure critical American supply chains and protect our national security,” the White House states.
US authorities claim to have taken measures to minimise unintended consequences or disruptions to the market, including arranging the first multinational meeting of more than a dozen countries to address connected car risks in July 2024 to advance proactive cybersecurity standards and coordinate policy measures to reduce risks.
The American auto industry says it supports a final rule that addresses the “unacceptable risks” associated with information and communications technology and services designed, manufactured or supplied by foreign adversaries.
John Bozzella, president and ceo of Alliance for Automotive Innovation, says the final rule “strikes a good balance,” as it also recognises that “changing the world’s most complex supply chain can’t happen overnight.”
Currently, Chinese all-electric, connected cars are subject to a 100% import tariff.
Source:Kallanish
