The US government is planning to impose new restrictions on Chinese vehicle software in August 2024, Reutersreported on Tuesday, citing a senior official.
US to submit a proposal restricting Chinese vehicle software in August 2024
The Commerce Department is preparing to propose new rules on connected vehicles as early as next month, according to the Under Secretary of Commerce for Industry and Security’s remarks at a recent forum in Colorado.
The move is part of the government’s plans to impose new restrictions on some vehicle software made in China and “other countries.”
“We’re looking at a few components and some software – not the whole car – but it would be some of the key driver components of the vehicle that manage the software and manage the data around that car that would have to be made in an allied country.”
Alan Estevez, the Under Secretary of Commerce for Industry and Security
National security concerns drive potential restrictions
The plans to impose new restrictions on Chinese vehicle software aligns with the Biden administration’s intensifying opposition to China’s automotive industry, which has become a strong electric vehicle and battery powerhouse.
In fact, the US government has already quadrupled its import tariffs on China-made electric vehicles to 100% in May 2024. The measure demonstrates the White House’s determination to protect its domestic industry and homegrown players against the surge of low-cost Chinese EV imports.
With modern cars becoming essentially “smartphones on wheels,” the US government is now scrutinizing the potential national security threats posed by Chinese-made software in these cars.
Industry and Security Commerce Under Secretary Alan Estevez raised concerns about the vast amount of personal information modern cars with internet access can collect on their owners.
“A car is a very scary thing. A modern car has a lot of software in it. It’s taking lots of pictures. It has a drive system. It’s connected to your phone. It knows who you call. It knows where you go. It knows a lot about you.”
Alan Estevez, the Under Secretary of Commerce for Industry and Security
Move sparks fears of trade war escalation
The under-consideration new restrictions stems from a US Commerce Department investigation that began in February 2024. This probe focused on potential security risks linked to connected vehicles, especially those made in China.
The Biden administration contended then that these connected cars could collect crucial data on US infrastructure. It also worried about these cars’ capability to be “piloted or disabled remotely.”
“It doesn’t take a lot of imagination to think of how foreign government with access to connected vehicles could pose a serious risk to both our national security and the personal privacy of US citizens.”
US Secretary of Commerce Gina Raimondo said in a press release in February
The US government is not the only one with major security fears regarding smart cars. China has previously restricted Tesla electric cars over similar privacy concerns.
While the US’ security concerns are understandable, the move could potentially intensify the trade war between the world’s two largest economies.
