In a significant move towards enhancing national security, the U.S. Commerce Department has proposed a ban on the use of certain car parts manufactured in China and Russia, set to take effect in 2027. This decision follows an investigation initiated by President Biden in February, aimed at assessing potential security threats posed by Chinese vehicles on American roads.
The proposed regulations would primarily target hardware and software that enable connectivity in vehicles, including Bluetooth and satellite modules, as well as components related to autonomous driving systems.
National Security Adviser Jake Sullivan expressed concerns during a press call, stating, “There is substantial evidence of China pre-positioning malware within critical infrastructure for disruption and sabotage purposes. With millions of vehicles equipped with these technologies on the road and an expected lifespan of 10 to 15 years, the risk for potential disruptions is greatly heightened.”
FBI Director Christopher Wray previously warned Congress about China’s cyber threats targeting vital U.S. infrastructure, including water treatment facilities and power grids.
Furthermore, Sullivan emphasized that the ban is also designed to protect the personal security of U.S. drivers. He noted that, given the capabilities of Chinese and Russian software and hardware to collect sensitive data, these technologies cannot be trusted.
Commerce Secretary Gina Raimondo characterized the proposed ban, introduced by her department’s Bureau of Industry and Security, as a proactive measure, especially considering the relatively low number of Chinese cars currently on U.S. roads.
In 2023, approximately 104,000 Chinese-made vehicles were sold in the U.S., marking a 45% increase from the previous year.
“Our goal is to secure vehicles and protect the American people, including our children, from potential surveillance and other cybersecurity threats,” Raimondo stated.
Raimondo also highlighted Europe as a cautionary example, where nearly 500,000 Chinese-made vehicles are currently operational. A recent report indicated that Chinese automakers have surpassed U.S. manufacturers in total vehicle sales, achieving 13.4 million units compared to 11.9 million from U.S. companies.
Although the proposed regulations may have economic ramifications, Raimondo clarified that the primary motivation is national security, stating, “This is not about trade or economic advantage; this is purely a national security measure.”
Lael Brainard, national economic adviser, reinforced the administration’s commitment to American workers, asserting, “The future of the auto industry lies in American-made vehicles by American workers. Today’s announcement ensures that these cars are both secure and free from the risks associated with foreign technology.”
In a related action, President Biden recently imposed a 100% tariff on Chinese electric vehicles, emphasizing his dedication to ensuring that the future of this sector is rooted in American labor.
The Commerce Department is set to accept public comments on the proposed rule for 30 days before finalizing it. The planned prohibition on Chinese and Russian vehicle software is expected to initiate with the 2027 model year, while hardware restrictions will begin in 2029.
A senior administration official stated, “We intend to finalize this rule before the end of this administration, and we are optimistic about achieving that goal.”
