Washington. US Commerce Department announced Monday its intention to ban the sale of connected and autonomous vehicles in the country that utilize Chinese and Russian software and hardware, citing national security concerns and the protection of American drivers.

While the deployment of Chinese and Russian software in the U.S. is currently minimal, the situation is more complex regarding hardware. Consequently, the software prohibitions are set to take effect for the 2027 model year, while hardware restrictions will begin in 2030 or Jan. 1, 2029, for models without a specified year.

This proactive measure, described by officials as critical, aims to mitigate vulnerabilities associated with features such as microphones, cameras, GPS, and Bluetooth technology, which could expose personal information and make Americans susceptible to malicious actors. US Secretary of Commerce Gina Raimondo warned that in extreme scenarios, foreign adversaries could gain control of multiple vehicles, potentially leading to crashes and road blockages.

“This is not about trade or economic advantage,” Raimondo emphasized. “This is a strictly national security action. The good news is, right now, we don't have many Chinese or Russian cars on our roads.”

However, she cautioned that the rapid market penetration of Chinese vehicles in Europe should serve as a warning for the US Security concerns have arisen regarding the extensive software functions in these vehicles, which could affect national security and individual privacy.

A senior administration official pointed out that the terms of service contracts often indicate that data from vehicles is transmitted to China. Raimondo stated that the US will not wait until Chinese or Russian vehicles become widespread.

“We're proposing this rule to address these national security threats before suppliers and automakers linked to China or Russia become commonplace in the US automotive sector,” she said.

The Commerce Department is wary of China's ambitions to enter the US market, with several Chinese companies already eyeing opportunities in automotive software. The department has also included Russia in its regulations as the country seeks to revitalize its auto industry.

The proposed rule would prohibit the import and sale of vehicles featuring software and hardware from Russia and China that allow external communication via Bluetooth, cellular, satellite, or Wi-Fi. It would also restrict the sale or import of software components enabling highly autonomous vehicles to operate without a driver. This ban would apply to vehicles manufactured in the U.S. that utilize Chinese and Russian technology.

While the proposed rule affects all vehicles, it excludes those not intended for public roads, such as agricultural or mining vehicles.

U.S. automakers have expressed alignment with the government's national security objectives but noted that little connected vehicle technology is currently sourced from China. The Alliance for Automotive Innovation, a major industry group, warned that the new rules may necessitate urgent adjustments to supply chains. "You can't just flip a switch and change the world's most complex supply chain overnight," said CEO John Bozzella.

The lead time provided by the new rules may allow some automakers to adapt but could be insufficient for others. Commerce officials engaged with major auto companies globally while drafting the proposed rule to understand supply chain dynamics and also consulted various industry associations.

The Commerce Department will accept public comments for 30 days after the rule's publication before finalizing it, which is expected by the end of the Biden administration. This proposed rule follows recent actions by the administration to limit the influx of inexpensive products from China, including electric vehicles, in a bid to reduce US reliance on Beijing and strengthen domestic industry.