The Biden administration finalized a new rule that would effectively ban all Chinese vehicles from the US under the guise of blocking the “sale or import” of connected vehicle software from “countries of concern.” The rule could have far-reaching effects on big automakers like Ford and GM, as well as smaller makers like Polestar — and even non-car companies like Waymo.
The rule covers everything that connects a vehicle to the outside world, such as Bluetooth, Wi-Fi, cellular and satellite components. It also addresses concerns that technologies such as cameras, sensors and on-board computers could be used by foreign adversaries to collect sensitive data about US citizens and infrastructure. And it would stop China from testing its self-driving cars on American soil.
“Cars today have cameras, microphones, GPS tracking and other Internet-connected technologies,” US Commerce Secretary Gina Raimondo said in a statement. “It doesn’t take much imagination to see how a foreign adversary with access to this information could pose a serious risk to both our national security and the privacy of American citizens. To address these national security concerns, the Commerce Department is taking targeted and proactive steps to keep [People’s Republic of China] and Russian-made technologies off American roads.”
“A foreign adversary with access to this information could pose a serious risk”
The rules on banned software go into effect for 2027 vehicles, while China’s hardware ban waits until 2030 vehicles. According to Reutersthe rules were updated from the original proposal to exempt vehicles weighing more than 10,000 pounds, which would have allowed companies like BYD to continue assembling electric buses in California.
The new rule is the latest escalation in ongoing trade restrictions placed on Chinese-made vehicles, including components such as computers and batteries. It comes at a time when China is producing more cars than ever before, earning its status as the world’s No. 1 auto exporter. The rule also covers Russian-made vehicles and components.
China’s access to vehicle software poses “a significant threat” to the US in that it would give an adversary “unfettered access” to critical technology systems and the user data they collect, the White House said. .
“How [the People’s Republic of China] “As automakers aggressively seek to increase their presence in the U.S. and global auto markets, through this final rule, President Biden is fulfilling his commitment to secure critical American supply chains and protect our national security,” it added. administration.
The new rule is the latest escalation in ongoing trade restrictions imposed on Chinese-made vehicles
The auto industry tried to delay the rule by a year, effectively handing it over to the incoming Trump administration to implement, but failed. The Alliance for Automotive Innovation, which represents GM, Ford, Volkswagen, Toyota and others, said in comments submitted last April that it supports the intent of the proposed rules, but warned that the global automotive supply chain “is one of the most the world’s largest and most complex” and that parts could not simply be interchanged without interruption.
Other automakers were more forthright in their criticism. Polestar, an electric vehicle maker owned by Geely, said in October that the rule would “effectively bar Polestar from selling its cars in the United States, including the cars it makes in South Carolina.”
Indeed, the White House states in its fact sheet that the rule prevents the importation or sale of related vehicles “by entities that are owned, controlled by, or subject to the jurisdiction or direction of the PRC or Russia — even if those vehicles were manufactured in the United States.”
Meanwhile, Waymo, which is planning to use vehicles made by Geely’s Zeekr for next-generation robotaxis, said it takes precautions to ensure the vehicles it buys for its fleet arrive without any telematics systems installed by the manufacturer. However, the rule could significantly derail the Alphabet-owned company’s plans to expand if the government decides to ban the import of the Zeekr vehicle under the new rule.
“Waymo submitted comments in support of the rule last fall,” Waymo spokesman Ethan Teicher said in an email. “We are reviewing the final rule and appreciate the Department’s prompt rulemaking.”
A Polestar spokesman did not immediately respond to requests for comment.
Update on January 14: Updated to include a comment from Waymo.
