Chinese automakers are aiming to expand their influence in connected vehicle technologies within the United States and globally, presenting new national security risks, including vulnerabilities in supply chains. President Biden has announced measures to mitigate national security risks associated with connected vehicle technologies from certain countries. The Department of Commerce is issuing a notice of proposed rulemaking (NPRM) that would, if finalized, prohibit the sale or import of connected vehicles using specific technologies and components from the People’s Republic of China (PRC) and Russia.
This NPRM is a continuation of efforts that began in February 2024 and incorporates feedback from the Department’s advance notice of proposed rulemaking (ANPRM) issued on March 1, 2024. Connected vehicles, which enhance vehicle safety and driver assistance, also pose national security threats due to their advanced technologies. These technologies include systems that control vehicle movement, collect sensitive data, and enable automated driving, which can be exploited for surveillance or disruption.
The Department of Commerce has determined that technologies from the PRC and Russia pose significant threats. These technologies in connected vehicles could be used for surveillance or sabotage, undermining national security. The proposed rule would ban the import or sale of connected vehicle systems and components developed by entities with ties to the PRC or Russia. The rule targets “vehicle connectivity systems” (VCS) and “automated driving systems” (ADS). It includes restrictions on VCS and ADS software and hardware.
Basically, there are concerns that your smart vehicle will be spying on everything you do and reporting back to a centralized server. This information could potentially be used for nefarious things like intentional car accidents, disabling cars at opportune times ( like what Tesla just did for that Russian warlord’s Cybertruck ), or just reporting back nation state secrets.
The Department of Commerce is seeking input from stakeholders to refine the final rule, ensuring it maximally protects U.S. national security while minimizing unintended consequences. The Administration emphasizes ongoing consultation with industry, allies, partners, and other stakeholders throughout the regulatory process.
Additionally, the Biden Administration is addressing threats from foreign automobiles and supply chains comprehensively. Previous actions include raising tariffs on Chinese electric vehicles and linking EV tax credit eligibility to North American assembly and sourcing. These actions underline the Administration’s commitment to supporting the American auto industry in quality, innovation, and fair competition.
For more information, view the White House’s statement here.
