WASHINGTON — The U.S. Commerce Department is expected to propose a ban on the use of Chinese software in self-driving and connected cars in the coming weeks, according to people familiar with the matter.
The Biden administration is expected to issue proposed rules to ban Chinese software from being used in Level 3 or above self-driving cars in the United States, which would also ban self-driving cars made by Chinese companies from being tested on U.S. roads.
In a previously unreported decision, the administration plans to propose banning vehicles equipped with advanced Chinese-developed wireless communication modules from driving on U.S. roads, the sources added.
Under the proposal, automakers and suppliers would have to ensure that their connected car and advanced self-driving car software wasn’t developed by a “foreign entity of concern” like China, the people said.
The Commerce Department said last month it plans to release proposed regulations on connected cars in August that would impose restrictions on some software made in China and other countries it considers adversaries.
Asked for comment, a Commerce Department spokesman said Sunday that the department is “concerned about national security risks associated with connected technology in connected vehicles.”
The department’s Bureau of Industry and Security will issue proposed rules “focused on specific systems of concern within vehicles, and industry will have an opportunity to review the proposed rules and provide comments.”
The Chinese embassy in Washington did not immediately comment, but China’s foreign ministry has previously urged the United States to “respect the laws of the market economy and the principles of fair competition.” Chinese cars are popular worldwide because they are technologically innovative and born out of fierce market competition.
The White House and State Department met with allies and industry leaders on Wednesday to “jointly address national security risks associated with connected vehicles,” and officials provided details of the administration’s planned rules, according to the sources.
The meeting brought together officials from the United States, Australia, Canada, the European Union, Germany, India, Japan, South Korea, Spain and the United Kingdom who “exchanged views on data and cybersecurity risks associated with connected vehicles and certain components.”
Level 3, also known as conditional driving automation, includes technology that allows drivers to engage in activities such as watching a movie or using a smartphone while driving, but only under limited conditions.
In November, a group of US lawmakers raised alarm over Chinese companies’ collection and handling of sensitive data during self-driving car tests in the US, and questioned 10 major companies, including Baidu, Nio, WeRide, Didi Chuxing, Xiaopeng, Inceptio, Pony.ai, AutoX, Deeproute.ai and Qcraft.
According to the letter, Chinese self-driving car companies drove more than 450,000 test miles in California in the 12 months ending in November 2022. In July 2023, Transportation Secretary Pete Buttigieg said the Department of Transportation had national security concerns about Chinese self-driving car companies in the United States.
The administration is concerned that connected cars could use driver monitoring systems to listen to or record occupants or even take control of the vehicle itself.
“The national security risks are enormous,” Commerce Secretary Gina Raimondo said in May. “This is a really serious issue, and that’s why I’m taking action.”
