US to impose restrictions on Chinese vehicle software

The US Commerce Department is set to release proposed rules next month regarding connected vehicles, with plans to impose limits on certain software originating from China and other countries considered adversaries, according to a senior official on Tuesday.

Alan Estevez, the chief of export controls, stated that the proposed rules would focus on specific components and software responsible for managing driver functions and data within the vehicle. These components would be required to be manufactured in allied countries, rather than in China or other nations deemed as adversaries. Estevez made these remarks during a forum in Colorado.

Earlier this year, Commerce Secretary Gina Raimondo announced the department’s intention to introduce proposed rules on Chinese-connected vehicles in the autumn. The Biden administration had also initiated an investigation in February to assess potential national security risks posed by Chinese vehicle imports. Raimondo had previously mentioned the possibility of taking “extreme action,” including banning Chinese-connected vehicles or imposing restrictions on them.

Estevez’s comments provide the clearest insight thus far into the administration’s plans regarding Chinese vehicles, which have raised significant concerns.

Connected cars, equipped with integrated network hardware, have the capability to access the internet, enabling data sharing with both internal and external devices.

Estevez emphasized the seriousness of the threat posed by connected vehicles, stating, “A car is a very scary thing. Your car knows a lot about you. Your car probably gets a software update, whether it’s an electric vehicle or an autonomous combustion engine vehicle.” Modern cars contain extensive software, capturing various data points such as images, drive system information, phone connections, and location details.

The Chinese foreign ministry has previously urged the United States to respect market economy laws and fair competition principles, highlighting the global popularity of Chinese cars resulting from intense market competition and technological innovation.

In May, Raimondo warned of potential catastrophic consequences if the software of millions of cars were disabled.

While the number of Chinese-made light duty vehicle imports in the United States is relatively low, the Biden administration has proposed significant tariff increases on Chinese electric vehicles and other goods, which are expected to take effect by August 1.