As concerns about national security continue to grow, the U.S. is implementing new measures that would ban Russian and Chinese tech from being integrated into American vehicles. This prohibition, proposed by the Department of Commerce’s Bureau of Industry and Security (BIS), targets connected and autonomous vehicle technology supplied by countries of concern, specifically China and Russia. The potential risks posed by foreign adversaries manipulating data from connected vehicles or even remotely controlling them have prompted this proactive regulatory approach.
What Technologies Are Affected?
The proposed rule targets specific hardware and software used in Vehicle Connectivity Systems (VCS) and Automated Driving Systems (ADS). These technologies, such as cameras, microphones, and GPS trackers, allow vehicles to collect and transmit data. By eliminating certain Chinese technology components from American roads, officials hope to mitigate risks associated with malicious access to this sensitive data. The ban would apply to personal vehicles, trucks, and buses, but exclude vehicles used exclusively for agriculture and mining.
Commerce Secretary Gina Raimondo emphasized that the regulation is intended to address national security concerns by preemptively limiting the presence of foreign technology in American vehicles. She stated, “Cars today have cameras, microphones, GPS tracking, and other technologies connected to the internet” and warned that foreign access to these could pose “a serious risk to both our national security and the privacy of U.S. citizens.“
The proposed regulations specify different timelines for various technologies. Restrictions on software will apply to vehicles manufactured from model year 2027 onward, while the hardware ban will take effect in model year 2030. This staggered timeline aims to give automakers time to transition their supply chains and replace any affected technology before the rules become mandatory. According to John Bozzella, president of the Alliance for Automotive Innovation, this lead time is essential because it “will allow some auto manufacturers to make the required transition but may be too short for others”.
Strategy vs. International Policy Alignment
This move is part of a broader U.S. government strategy to limit the presence of Chinese technology across industries. Earlier this year, the Biden administration imposed a 100% tariff on Chinese electric vehicles and increased tariffs on EV batteries and other critical automotive components. The latest proposal aligns with these efforts, and officials indicate that they’re not willing to wait for risks to increase before taking action. Raimondo asserted that the government is acting proactively “before suppliers, automakers, and car components linked to China or Russia become commonplace and widespread in the U.S. automotive sector”^2.
Canada, a key partner in North American trade, may follow the U.S. lead in banning Chinese tech from its vehicles. The Canadian Vehicle Manufacturers’ Association has already voiced support for the U.S. tariffs on Chinese EVs and emphasized the importance of aligning Canadian and American policies to avoid market disruptions. Flavio Volpe, president of the Automotive Parts Manufacturers’ Association, recommended that Canada “match the U.S. measures” to protect North America’s integrated automotive industry.
Predictably, the proposed ban has sparked criticism from China. Lin Jian, a spokesperson for China’s Foreign Ministry, accused the U.S. of broadening “the concept of national security” to discriminate against Chinese technology firms unfairly. He called for the U.S. to “respect market principles and provide an open, fair, transparent, and non-discriminatory business environment for Chinese enterprises”. China views these measures as a direct threat to its growing EV and intelligent vehicle industries, which have recently made significant inroads into international markets through government subsidies and rapid technological development.
Adapting to the Ban
The proposed rule poses a challenge for automakers who rely on complex, global supply chains. While there is currently limited use of Chinese technology in American cars, the rule could still require some manufacturers to make costly adjustments. Bozzella noted that “you can’t just flip a switch and change the world’s most complex supply chain overnight”. As such, many companies are calling for further clarification on the rule’s requirements and are voicing concerns about its impact on production costs.
Connected and autonomous vehicles contain software that allows them to interact with the internet and other networks, opening up a potential vulnerability if that software is compromised. A worst-case scenario could see foreign-controlled software used for large-scale surveillance or even remote control of vehicles on American roads. Raimondo warned that “in an extreme situation, a foreign adversary could shut down or take control of all their vehicles operating in the United States all at the same time—causing crashes, blocking roads”.
By restricting access to Chinese tech and materials, the U.S. and Canada may inadvertently drive up EV prices, impacting accessibility. Joanna Kyriazis, public affairs director at Clean Energy Canada, argued that affordability and accessibility must be key considerations in EV policy. She suggested that Canada could use the newly gained time from the tariffs to invest in domestic EV infrastructure and maintain affordability through federal incentive programs.
Kyriazis recommended extending these programs and ensuring broader EV availability, saying, “Millennial Canadians are the most interested in going electric, but they often live in or rent apartment buildings where access to charging is limited.” A coordinated approach in North America could help the continent establish its own secure supply chain, although it may mean higher upfront costs.
Looking at the Bigger Picture
The U.S. is preparing to ban certain Russian and Chinese technologies from vehicles due to concerns about security and privacy. By enacting a targeted approach that prioritizes national security, officials aim to reduce the potential for foreign influence over critical technology within the American automotive industry. However, with economic implications, international backlash, and supply chain adjustments on the horizon, the decision marks a significant step in a complex and evolving relationship between trade, technology, and security.
Read More: Chinese EV Battery Charges in Six Minutes, Works in Any Weather, and Has a 621-Mile Range