US Proposes Measures Against China and Russia
Due to National Security Threats|
Can Expect a Windfall?
The Biden administration has proposed banning the sale and import of connected vehicles that utilize hardware and software sourced from China and Russia. Announced by the U.S. Department of Commerce on September 23, this measure, aimed at addressing national security concerns, is set to take effect in 2027. If enacted, it would prohibit U.S. automakers and other major manufacturers from equipping connected and autonomous vehicles sold in the U.S. with significant Chinese components.
The Department of Commerce specified that the ban targets vehicles capable of communicating with external systems via Bluetooth, Wi-Fi, cellular networks, or satellite connections and those that can operate autonomously without driver intervention. These vehicles, often called connected vehicles, are integrated with advanced information and communication technologies. There are rising fears that entities from China and Russia could exploit these technologies to hack into connected vehicles, potentially stealing sensitive personal data or gaining unauthorized control over the vehicles.
Vehicles Communicating with Each Other
Proactive Response to Severe Weather
Connected vehicles extend their capabilities beyond merely receiving driving-related information, such as traffic flow and weather updates. They communicate with one another and integrate into the Internet of Things (IoT), enabling interactions with smartphones, homes, offices, and various city infrastructure systems.
In the U.S., where population density is high in regions prone to heavy snowfall, the Department of Transportation has focused on enhancing winter weather forecasts to reduce accident risks. Traditional weather observation systems rely on central control centers that gather data from roadside base stations and send it unidirectionally to vehicles. In contrast, a connected vehicle system facilitates real-time exchanges of road condition information, allowing for proactive responses to severe weather, thereby improving safety and driving efficiency.
Deeply Linked to US Infrastructure
Providing Information to Foreign Adversaries
White House National Security Adviser Jake Sullivan highlighted the risks associated with connected vehicles, stating they are “particularly threatening because they are deeply embedded in our nation’s infrastructure, including charging stations, storage systems, and power generation.” Secretary of Transportation Pete Buttigieg added that modern vehicles with cameras, microphones, GPS tracking, and other internet-connected technologies raise significant concerns. He noted, “It’s not hard to imagine how a foreign adversary with access to this information could pose a serious national security threat and a violation of Americans’ privacy.”
In response, China criticized the U.S. announcement as discriminatory. Lin Jian, a Chinese Ministry of Foreign Affairs spokesperson, stated, “China opposes the United States’ generalization of the concept of national security and its discriminatory measures against Chinese companies and products.” He called for a fair and non-discriminatory business environment for Chinese firms operating in the U.S.
Exempting Agricultural and Mining Vehicles
Can Expect a Windfall?
The proposed software ban will affect vehicles starting with the 2027 model year, while hardware regulations will come into force for the 2030 models. The regulations will apply for vehicles lacking a specified model year beginning in 2029. These regulations encompass all motor vehicles, including passenger cars, trucks, and buses, but they will exempt agricultural and mining vehicles not operated on public roads.
The final regulations will be established following a 30-day public comment period, during which input from industry stakeholders will be gathered. Concerns have been raised that these measures may have long-term negative effects, potentially hindering Chinese automakers and other competitors from entering the U.S. market.
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