US expected to propose ban on Chinese tech in connected vehicles

Move due to national security concerns to include autonomous vehicles, say sources

The US Commerce Department is expected on Sept 23 to propose prohibiting Chinese software and hardware in connected and autonomous vehicles on American roads due to national security concerns, two sources told Reuters.

The Biden administration has raised serious concerns about the collection of data by Chinese companies on US drivers and infrastructure, as well as the potential foreign manipulation of vehicles connected to the internet and navigation systems.

The proposed regulation would ban the import and sale of vehicles from China with key communications or automated driving system software and/or hardware, said the two sources.

They declined to be identified because the decision had not been publicly disclosed.

The move is a significant escalation in the US' ongoing restrictions on Chinese vehicles, software and components.

The Biden administration recently locked in steep tariff hikes on Chinese imports, including a 100 per cent duty on electric vehicles and new hikes on electric vehicle batteries and key minerals.

Commerce Secretary Gina Raimondo said in May that the risks of Chinese software or hardware in connected US vehicles were significant.