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U.S. to Ban Sales of Cars with Chinese and Russian Tech, Citing Security Risks

Daniel Kim Views  

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The U.S. government has announced plans to gradually ban the sale of vehicles that incorporate software or components from China or Russia, specifically targeting autonomous driving and communication functions. 

Korean car manufacturers selling vehicles in the U.S. that rely on these restricted technologies will need to adjust their supply chains, which could result in significant challenges.

Despite the immediate hurdles, some analysts argue that the U.S. government’s decision could ultimately benefit American automotive firms. By restricting Chinese competitors from accessing the U.S. market, domestic companies may gain a competitive edge and increase their market share.

On Monday, the U.S. Department of Commerce announced a proposed regulation that prohibits importing and selling vehicles equipped with specific hardware or software linked to China or Russia in their Vehicle Connectivity Systems (VCS) or Autonomous Driving Systems (ADS).

VCS enables cars to communicate with external sources through Bluetooth, cellular networks, satellites, and Wi-Fi, while ADS allows vehicles to operate autonomously without human intervention. The regulation aims to curb the proliferation of these technologies from hostile nations, thereby safeguarding national security interests.

Connected vehicles, often called “smart cars,” communicate with their surroundings via wireless networks and provide features such as navigation, autonomous driving, and driver assistance systems. Nearly all new vehicles include some form of these functions.

During a press briefing, Secretary of Commerce Gina Raimondo highlighted the potential dangers of foreign-controlled vehicle technologies. She warned that adversaries could, in extreme cases, remotely disable or manipulate vehicles on U.S. roads, leading to accidents and traffic disruptions.

Raimondo added, “The good news is that right now, we don’t have many Chinese or Russian cars on our roads. The U.S. won’t wait until its roads are populated with Chinese or Russian cars.”

The proposed regulation also prohibits manufacturers linked to China or Russia from selling connected vehicles that use VCS or ADS technology in the U.S., even those manufactured in the U.S.

While the regulation’s primary focus is on China and Russia, it will also impact any country exporting connected vehicles with these restricted technologies to the United States.

In response to the announcement, the South Korean government and the global automotive industry have urged the U.S. administration to refine the ban. They advocate for the restriction to apply solely to components that pose a “serious risk to national security” and have requested a grace period to allow manufacturers to comply. Other major automotive producers worldwide have made similar appeals.

Acknowledging these concerns, the Department of Commerce has agreed to the industry’s some of the automotive industry’s requests. The implementation of the ban on software will begin with 2027 vehicle models, while hardware restrictions will take effect starting with 2030 models. The regulation will encompass all types of vehicles, including passenger cars, trucks, and buses, but will exclude agricultural machinery and mining vehicles not used on public roads.

The Department of Commerce plans to finalize the regulations following a 30-day public comment period, allowing stakeholders and the public to provide input on the proposed changes.

Daniel Kim
content@viewusglobal.com

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