The United States has finalized a rule banning Chinese and Russian technology in smart cars sold domestically, citing national security concerns.
At a Glance
- The ban applies to passenger vehicles under 10,001 pounds, effective from model year 2027 for software and 2030 for hardware.
- The rule is part of President Biden’s efforts to increase restrictions on China and maintain US technological leadership.
- The prohibition affects vehicles with hardware and software for external connectivity and autonomous driving linked to China or Russia.
- US officials plan to investigate expanding these restrictions to include commercial vehicles such as buses and trucks.
- The initiative aligns with broader efforts to enhance US automotive manufacturing and AI development.
National Security Concerns Drive New Regulations
The United States government has taken a significant step to address national security concerns by finalizing a rule that prohibits the use of Chinese and Russian technology in smart cars sold in the American market. This decision, part of President Joe Biden’s broader strategy to curtail reliance on foreign technology, specifically targets vehicles weighing less than 10,001 pounds and will be implemented in phases.
Biden did…something…right?
The new regulation reflects the growing concern over the potential risks associated with advanced technology in modern vehicles. Commerce Secretary Gina Raimondo emphasized the critical nature of this issue, stating, “Cars today aren’t just steel on wheels — they’re computers.”
The ban will take effect for connected vehicles starting with the 2027 model year, targeting manufacturers with ties to China or Russia, even if the vehicles are produced in the United States. For hardware components, the restrictions will begin in 2030. Vehicles without a specific model year will face restrictions starting January 1, 2029.
“This is a targeted approach to ensure we keep PRC and Russian-manufactured technologies off American roads,” Commerce Secretary Gina Raimondo said.
While the current focus is on passenger vehicles, the Commerce Department has indicated plans to address commercial vehicles in the future. The department stated that a separate rule for smart commercial vehicles like trucks and buses would be issued “in the near future,” acknowledging the complexity of the commercial vehicle supply chain.
Broader Implications for US-China Relations
This move is part of a larger strategy by the Biden administration to enhance US technological dominance and reduce dependence on foreign, particularly Chinese, technology. National Economic Advisor Lael Brainard highlighted the competitive aspect of this decision, noting, “China is trying to dominate the future of the auto industry.” The ban aligns with other initiatives, such as curbing Chinese imports of key technologies like solar panels and plans to ban TikTok.
The new regulations may provoke retaliation from China, which has already criticized AI-related export curbs as violations of international trade rules. This development adds another layer of complexity to the already strained US-China relations, particularly in the technology sector.
It’s hard to admit it but Biden might be right on this one.
