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U.S. Commerce Department to Propose Bans on Chinese Software and Connected Vehicles

The U.S. Commerce Department is expected to propose bans on Chinese software in autonomous and connected vehicles due to security risks. This move, under the Biden administration, would prohibit Chinese software in any vehicle with Level 3 automation or higher, including the testing of autonomous vehicles produced by Chinese companies on U.S. roads. Additionally, vehicles with Chinese-developed advanced wireless communication abilities would also be barred under this proposal.

The White House and Department of State recently hosted a meeting to discuss the national security risks associated with connected vehicles. Officials from various countries exchanged views on the data and cybersecurity risks posed by connected vehicles, highlighting the importance of addressing these concerns. Connected vehicles are seen as a key node in critical infrastructure as they constantly connect with other vehicles, personal devices, telecommunications networks, and other infrastructure. The United States and its partner nations are exploring options for advancing affirmative cybersecurity standards and coordinating policy measures to mitigate risks.

U.S. lawmakers have previously raised concerns about Chinese companies collecting and handling data while testing autonomous vehicles. In the 12 months leading up to November 2022, Chinese autonomous vehicle companies test drove over 450,000 miles in California, raising red flags about data security and privacy issues.

In related news, the U.S. Trade Representative Office has delayed a tariff increase on electric vehicles by at least two weeks. The tariffs, which were set to start on August 1, are still under review as the office considers the 1,100 comments received. A final determination is expected to be made this month, with tariffs likely to start approximately two weeks after.

President Joe Biden previously announced 100% tariffs on Chinese electric vehicles in May, with the European Union following suit by imposing tariffs of up to 38% last month. Canada is also considering imposing tariffs on Chinese-made electric vehicles, reflecting a global trend towards protecting domestic industries and addressing security concerns.

Overall, the proposed bans on Chinese software in autonomous and connected vehicles highlight the growing importance of cybersecurity in the automotive industry. As vehicles become more connected and autonomous, ensuring the security and privacy of data transmitted and stored within these vehicles is crucial. By taking proactive measures to address security risks, the U.S. Commerce Department aims to protect national interests and safeguard critical infrastructure from potential threats.

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