US set to block Chinese software from autonomous vehicles

In a move poised to reshape the landscape of the autonomous vehicle industry, the U.S. Commerce Department is preparing to propose a rule that would prohibit the use of Chinese software in autonomous and connected vehicles.

Sources familiar with the matter have indicated that this proposal could be unveiled in the coming weeks, highlighting the Biden administration’s increasing focus on national security risks associated with foreign technologies.

The proposed regulation aims to restrict vehicles featuring Level 3 automation and higher from utilizing software developed by Chinese entities.

This would also effectively halt the testing of autonomous vehicles produced by Chinese companies on U.S. roads. Furthermore, the administration is expected to extend this ban to vehicles equipped with advanced wireless communications modules developed in China, as reported by Reuters.

Under the new proposal, automakers and suppliers will be required to ensure that none of their connected or advanced autonomous vehicle software originates from “foreign entities of concern,” specifically China.

The Commerce Department had previously indicated plans to address connected vehicle regulations, with a focus on limiting software from countries deemed adversaries, including China.

A spokesperson for the Commerce Department reiterated concerns about the national security risks posed by connected technologies within vehicles.

The Bureau of Industry and Security is working on a proposed rule that will target specific systems considered problematic, and industry stakeholders will have an opportunity to review and comment on these regulations.

In response to the anticipated restrictions, a spokesperson for the Chinese Embassy in Washington emphasized the need for cooperation and fair competition in the global electric vehicle market.

The spokesperson urged the U.S. to adhere to market principles and international trade rules, asserting that such cooperation would yield mutual benefits and foster technological progress.

This significant development follows a recent meeting hosted by the White House and State Department, which brought together allies and industry leaders to discuss the national security risks associated with connected vehicles. Participants from the U.S., Australia, Canada, the European Union, and several other countries exchanged insights on the data and cybersecurity threats linked to these technologies.

Level 3 automation, also referred to as conditional driving automation, allows drivers to engage in non-driving activities, such as watching movies or using smartphones, but only under specific conditions. Concerns have been mounting among U.S. lawmakers regarding the potential for Chinese companies to collect and misuse sensitive data during autonomous vehicle testing in the U.S. In fact, a group of lawmakers expressed alarm after Chinese AV companies reportedly test drove over 450,000 miles in California within a year, raising flags about data privacy and security.

Transportation Secretary Pete Buttigieg has previously voiced apprehensions regarding Chinese autonomous vehicle companies operating in the U.S., warning that the risks associated with connected vehicles could be significant. Commerce Secretary Gina Raimondo underscored the urgency of the matter, stating, “We decided to take action because this is really serious stuff.”