Biden Administration Proposes Ban on Vehicle Software, Hardware from China, Russia

On September 23, the Biden administration declared a significant proposed rule change aimed at restricting the import and sale of technology-connected vehicles and their components from China and Russia.

If adopted, this new regulation from the Department of Commerce will ban the importation and sale of specific connected vehicle systems that have ties to entities within the People’s Republic of China or Russia. These countries have been indicated by the White House as “countries of concern.”

The regulations focus on vehicle connectivity systems, which include various technologies such as Bluetooth, cellular, satellite, and Wi-Fi modules, as well as automated driving systems.

The White House highlighted the dual nature of connected vehicles. While these technologies offer numerous advantages—ranging from enhanced vehicle safety features to advanced navigational assistance—they can also introduce significant security risks. The technologies in question control vehicle operations and gather sensitive information about drivers and passengers. They also employ cameras and sensors critical for automated driving, tracking intricate data related to the nation’s infrastructure.

Recognizing potential impacts on the automotive industry, the rule will consider exemptions for smaller producers of vehicles. This measure aims to reduce unexpected complications and disruptions within the sector.

The proposed bans on software will be applicable starting with the Model Year 2027, while hardware-related bans are set to take effect for Model Year 2030, as well as on January 1, 2029, for units lacking a model year.