Washington has proposed a ban on the sale or import of connected vehicles from China and Russia citing national security concerns.

According to the US Department of Commerce, technologies such as vehicle connectivity system (VCS) and automated driving system (ADS) provide benefits in terms of safety and supporting drivers, but also pose “new and growing threats.” 

VCS connects the vehicle to the outside world, including via Bluetooth, cellular, satellite, and Wi-Fi modules, while ADS allows highly autonomous vehicles to operate without a driver behind the wheel. 

The department says these technologies provide “opportunities to collect and exploit sensitive information.” For example, they can capture information about geographic areas or critical infrastructure, meaning that “malicious actors” could “disrupt the operations of infrastructure or the vehicles themselves,” it adds.

Such technologies imported from China and Russia present “particularly acute threats” to national security, the government says.

The proposed rule includes restrictions on imports or sales of connected vehicles using VCS and ADS software, as well as imports of VCS hardware equipment, Kallanish reports. However, certain parties, such as small producers of vehicles, could be exempted “on an exceptional basis” to minimise disruption to industry.

The bans on software would take effect from Model Year 2027, and the prohibitions on hardware from Model Year 2030.

China’s foreign ministry spokesperson says: “As a principle, I want to emphasise that China opposes the US generalisation of the concept of national security and discriminatory practices against Chinese companies and products. We urge the US to respect market principles and provide Chinese companies with an open, fair, transparent, and non-discriminatory business environment. China will firmly safeguard its legitimate rights and interests.”

John Bozzella, president and ceo of Alliance for Automotive Innovation, comments: “There’s actually very little technology – hardware or software – in today’s connected vehicle supply chain that enters the US from China. But this rule will require auto manufacturers in some cases to find alternate suppliers.”

“You can’t just flip a switch and change the world’s most complex supply chain overnight. It takes time,” Bozzella adds. “The lead time included in the proposed rule will allow some auto manufacturers to make the required transition but may be too short for others.”