The U.S. Department of Commerce has proposed a sweeping ban on the sale and import of smart vehicles equipped with certain Chinese and Russian technologies, citing potential national security risks. The new regulations, announced on Monday, would restrict vehicles that use embedded software or hardware from these countries, with the aim of preventing potential hacking and data collection that could endanger American consumers and critical infrastructure.
The proposed ban stems from a government investigation that began in February, which identified several security vulnerabilities related to Chinese and Russian technology used in U.S. vehicles. Commerce Secretary Gina Raimondo, in a call with reporters, emphasized the gravity of the threat. "In extreme situations, a foreign adversary could shut down or take control of all vehicles operating in the United States, all at the same time, causing crashes or blocking roads," Raimondo said.
The rule would apply to vehicles manufactured for the 2027 model year for software restrictions and the 2030 model year for hardware bans. It would not affect vehicles already on U.S. roads, according to senior officials. The Commerce Department has initiated a 30-day public comment period to gather feedback before finalizing the regulation, which could be implemented by the end of the Biden administration.
The proposed rule marks the latest effort by the U.S. to safeguard critical industries from what it views as undue influence by foreign adversaries, particularly China and Russia. This move also aligns with broader U.S. efforts to secure supply chains for key technologies such as semiconductors and artificial intelligence, where China has made significant inroads.
China, a global leader in the electric vehicle (EV) market, has expanded its presence in Europe, and U.S. officials have expressed concern about similar moves targeting the American market. According to Raimondo, the U.S. government is not seeking to block trade but rather to address specific national security risks. "This is not about trade or economic advantage," she clarified. "This is a strictly national security action."
A major concern raised by the investigation is the potential for foreign adversaries to collect sensitive data through the software embedded in connected vehicles, which rely on network connections like Bluetooth, Wi-Fi, and cellular technology. "If China or Russia, for example, could collect data on where the driver lives or what school their kids go to, where their doctor is-that's data that would leave Americans vulnerable," Raimondo added.
White House national security adviser Jake Sullivan echoed these concerns, highlighting the growing risk posed by China's influence in key infrastructure sectors. Sullivan stated that Chinese-made technologies embedded in EV charging stations and other infrastructure could open new vulnerabilities to remote sabotage. "We've already seen ample evidence of the PRC pre-positioning malware on our critical infrastructure for the purpose of disruption and sabotage," he said, using an acronym for the People's Republic of China.
China has strongly denied U.S. allegations of cyber threats and opposed the Commerce Department's proposed rule. "China opposes the U.S.'s broadening of the concept of national security and the discriminatory actions taken against Chinese companies and products," said Lin Jian, a spokesman for China's Foreign Ministry. "We urge the U.S. side to respect market principles and provide an open, fair, transparent, and non-discriminatory business environment for Chinese enterprises."
The new proposed rule is part of a broader U.S. initiative to strengthen protections for critical industries. In June, the Commerce Department banned the sale of products from Russian cybersecurity firm Kaspersky Lab, citing concerns that its widely used antivirus software posed a threat to national security. The U.S. has also implemented steep tariffs on Chinese electric vehicles, with the Biden administration aiming to protect strategic industries from what it considers unfair competition driven by China's state-supported industrial policies.
In addition to the vehicle technology ban, the White House announced new initiatives aimed at bolstering the American auto sector, particularly unionized autoworkers in key states like Michigan, where President Joe Biden secured crucial electoral victories in 2020. The initiatives include $1 billion in financing for small- and medium-sized auto suppliers, a pilot program to train workers in Michigan's largest county, and funding for electric vehicle charger installation training.
Vice President Kamala Harris, in a statement accompanying the announcement, reaffirmed the administration's commitment to American autoworkers and the broader middle class. "I believe in an economy where everyone has a chance to compete and a chance to succeed," Harris said. "Yet for far too long, we have seen a lack of investment in communities across America and profound obstacles to economic opportunity-including in communities with historic manufacturing expertise such as Detroit."
These announcements reflect the Biden administration's broader strategy to address both foreign competition and the domestic economic challenges facing key industries, particularly the auto sector. As the global auto market shifts toward electric vehicles, U.S. policymakers are increasingly focused on ensuring that American companies remain competitive, particularly in the face of what they describe as China's unfair trade practices.
Lael Brainard, the top White House economic adviser, further outlined this strategy in a speech at the Detroit Economic Club, warning that China's overcapacity in the EV sector could severely impact American automakers if safeguards are not put in place. "We have seen this playbook before in the China shock of the early 2000s that harmed our manufacturing communities," Brainard said, referencing the loss of more than 55,000 manufacturing jobs in the Detroit area due to competition from China.
