The U.S. government is considering imposing a ban on Chinese software in self-driving and connected vehicles, a move that could have significant implications for the automotive industry. The Biden administration is expected to propose these rules in the coming weeks, with the U.S. Commerce Department looking to ban Chinese software in autonomous and connected vehicles with Level 3 or higher autonomous capabilities.
Level 3 autonomous driving allows drivers to take their focus off the road and engage in other activities unless prompted to take over driving by the vehicle. The proposed rule would require automakers and suppliers to confirm to regulators that their connected vehicle and Level 3 software platforms were not developed in a „foreign entity of concern,“ such as China. This move is driven by concerns about national security risks associated with connected technologies in vehicles.
The Commerce Department’s Bureau of Industry and Security is expected to lead the implementation of this rule, which will focus on specific systems of concern within the vehicle. Industry stakeholders will have the opportunity to review the proposed rule and submit comments before it is finalized. The department had previously indicated its intention to impose limits on Chinese software and software from other adversarial countries.
In response to the expected proposal, a spokesperson from the Chinese embassy in Washington D.C. emphasized the importance of fair competition and market principles, urging the U.S. to create a level playing field for companies from all countries. The U.S. government recently held a meeting with officials from various countries to address national security risks associated with connected vehicles, signaling a coordinated effort to mitigate potential threats.
The issue of national security risks in connected vehicles has been a topic of concern for some time, with legislators raising alarms about the potential misuse of sensitive data by Chinese companies in autonomous vehicle tests. Commerce Secretary Gina Raimondo highlighted the seriousness of these risks, emphasizing the need for action to address them effectively.
This development comes amid escalating trade tensions between the U.S. and China, with both countries imposing tariffs on each other’s products. The automotive industry has not been immune to these tensions, with the U.S. and the EU implementing tariffs on Chinese electric vehicles to protect their domestic markets. The approval of autonomous driving tests by multiple companies in China, including foreign automakers like Mercedes-Benz and Tesla, underscores the growing importance of this market for advanced automotive technologies.
As the U.S. government moves forward with its proposal to ban Chinese software in self-driving and connected vehicles, the automotive industry will be closely watching for potential implications on innovation and competition. The outcome of this regulatory action could shape the future landscape of autonomous driving technologies and international trade relations in the automotive sector.