- The US has finalized rules to crack down on Chinese and Russian tech in connected cars, effectively banning smart cars from both countries from entering the US market.
- China's Ministry of Foreign Affairs said that the US practice violates the principles of market economy and fair competition, and is firmly opposed to it.
The US has finalized rules to crack down on Chinese and Russian tech in connected cars, effectively banning smart cars from both countries from entering the US market, after issuing a notice of proposed rulemaking last September.
The Biden administration announced the decision in a January 14 statement, saying the move was aimed at protecting the US from national security risks posed by Chinese and Russian exploitation of the US connected car supply chains.
The US Department of Commerce issued a final rule banning the sale and import of connected car hardware and software systems, as well as completed connected cars, from China and Russia, according to the statement by the White House.
China's Ministry of Foreign Affairs said yesterday that the US move violates the principles of market economy and fair competition, and is typical of protectionism and economic coercion, which China firmly opposes.
China urges the US to stop its unreasonable suppression of Chinese companies and will take necessary measures to safeguard its legitimate rights and interests, a spokesman for China's foreign ministry said.
Connected vehicles consist of many connected components and systems, such as Wi-Fi, Bluetooth, cellular and satellite connectivity, and are designed to provide greater convenience for consumers and improved safety for drivers, passengers and pedestrians, the White House statement noted.
The final rule prohibits the import or sale of certain connected vehicle systems designed, developed, manufactured, or supplied by entities with ties to China or Russia.
This includes vehicle connectivity systems (VCS), or systems and components that connect a vehicle to the outside world, including through Bluetooth, cellular, satellite, and Wi-Fi modules, and automated driving systems (ADS).
The rule includes restrictions on the import or sale of connected vehicles that use VCS and ADS software and the imports of VCS hardware equipment.
The software restrictions will take effect for Model Year 2027 and the hardware restrictions will take effect for Model Year 2030.
The rule also includes a ban on the sale of connected vehicles in the US by Chinese or Russian entities, even if the vehicles are manufactured in the US. That prohibition will take effect with Model Year 2027.
While this final rule applies only to passenger cars, the US Department of Commerce has also announced that it intends to develop rules to address the participation of foreign adversaries in the supply chain of commercial connected vehicles or vehicles with a gross vehicle weight rating of more than 10,000 pounds (4.54 tons), “given the significant and unique risks they pose to national security and public safety.”
The US Department of Commerce will also continue to consider using its authority to address individual entities that may pose a threat to the ICTS supply chain for connected vehicles, according to the statement.
Last September, the US Department of Commerce's Bureau of Industry and Security issued a notice of proposed rulemaking stating that it would prohibit the sale or import of connected vehicles that integrate specific Chinese and Russian hardware and software.
Prior to that, the US government announced in May that it was raising tariffs on Chinese electric vehicles (EVs) from 25 percent to 100 percent.
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