The United States proposes a prohibition on intelligent automobiles incorporating technology from China and Russia.
A probe initiated in February by the American government unearthed potential dangers associated with embedded software and hardware from China and Russia in US automobiles. These risks encompass the potential for remote sabotage through hacking and the collection of personal data relating to motorists, as disclosed by Secretary of Commerce Gina Raimondo during a press call on Sunday.
In extreme scenarios, a hostile foreign power could potentially disable or seize control of all vehicles in the US concurrently, leading to accidents or street blockages, according to Raimondo.
The new regulations won't apply to existing US vehicles already boasting Chinese software, as confirmed by a high-ranking government official to CNN. The software restriction will commence for vehicles in "model year" 2027, and the hardware ban will be implemented for vehicles in "model year" 2030, according to the Commerce Department.
This regulatory move forms part of a large-scale standoff between the US and China – the world's two leading economies – in their quest to secure the supply chains of emerging digital technology, including semiconductors and AI software.
China has demonstrated significant investment in the connected car sector, while advancements made by Chinese automakers in Europe have raised concerns among US representatives.
There are also apprehensions regarding the data collected by Tesla (TSLA) vehicles within China, with some Chinese authorities barring the vehicles from entering their premises, as previously reported by CNN.
The Commerce Department's proposal pertains to 'connected vehicles,' defined broadly as contemporary cars, buses, or trucks that utilize network connectivity for roadside assistance, satellite connections, or a range of associated features. The proposed regulation covers hardware and software compatible with key technology enabling vehicles to connect with the outside world, such as Bluetooth, WiFi, and cellular networks.
The proposal will undergo a 30-day public comment period, while the Commerce Department aims to issue a final regulation prior to the conclusion of the Biden administration. Additionally, on Monday, the Biden administration will publish an economic analysis projecting the expenses for automakers and consumers in complying with the proposed regulations, an administration official informed reporters.
Raimondo declared Monday's announcement was not a protectionist maneuver, addressing accusations of protectionism levied by Chinese critics.
“This is not about trade or economic advantages," Raimondo stated. "This is a purely national security action.”
She added, “Should China or Russia, for instance, obtain access to the driver's residence location or the schools their children attend, or their physicians' addresses, that info would leave the American vulnerable.”
US authorities are skeptical about the vulnerability of electric charging stations and associated infrastructure furnished with specific hardware or software, which could be abused by hackers with allegations of ties to China, Russia, or other foreign powers.
“We've already witnessed ample proof of the PRC premeditatedly positioning malware on our critical infrastructure for the purpose of disruption and sabotage," White House national security advisor Jake Sullivan told reporters during the press call, utilizing an abbreviation for the Chinese government. If millions more smart vehicles fitted with susceptible Chinese-made technology populate US roads, he warned, “the likelihood of disruption and sabotage strengthens substantially.”
The Chinese government has responded to US claims, denying the installation of hacking tools within US infrastructure.
“China opposes the US's extension of the national security definition and the discriminatory actions imposed on Chinese companies and products,” said Lin Jian, spokesman for China's Foreign Ministry, in an official statement. “We urge the US side to honor market principles and provide an open, fair, transparent, and non-discriminatory business environment for Chinese enterprises.”
This is yet another instance of the Commerce Department employing its extensive regulatory capability to safeguard US consumers from overseas software deemed a potential threat to national security.
In June, the department restricted the sale and provision of certain products and services by Russian cybersecurity firm Kaspersky Lab, whose antivirus software is utilized globally by hundreds of millions of people.
Due to the concerns over national security, the Commerce Department is planning to ban the use of certain hardware in vehicles from "model year" 2030, as part of a standoff with China over digital technology supply chains. This move is seen as a business opportunity for tech companies based in countries other than China.
The US tech industry is actively engaging in this business opportunity, as the new regulations could lead to a shift in demand for software and hardware that meets the new security standards, creating new business opportunities.
