The Biden administration recently finalized new regulations aimed at mitigating national security risks posed by connected car technologies sourced from China and Russia. These rules, established by the Commerce Department’s Bureau of Industry and Security (BIS) and the Office of Information and Communications Technology and Services (OICTS), target specific hardware and software components deemed vulnerable.
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The regulations prohibit the sale and import of certain technologies integral to connected car features, including internet-connected automated driving systems and vehicle assistance features. This action stems from concerns that these components, originating from companies with ties to China or Russia, “present an undue and unacceptable risk to US national security.”
Timeline for Implementation and Impact on Automakers
The software-related prohibitions will be effective for the 2027 model year, while hardware restrictions will apply to the 2030 model year (or January 1, 2029, for vehicles without a model year). Furthermore, the sale of connected vehicles by manufacturers linked to China or Russia will be prohibited starting with the 2027 model year, even if the vehicles are manufactured in the United States.
These new rules effectively ban Chinese- and Russian-made cars incorporating the targeted technologies. This ban follows the White House’s decision to significantly increase tariffs on certain Chinese electric vehicles. Automakers, requiring time to adapt their supply chains and remove affected hardware and software, have been advocating for extended implementation timelines.
Balancing National Security and Industry Needs
The regulations impact automakers like GM and Ford, which produce vehicles such as the Buick Envision and Lincoln Nautilus in China. Volvo, manufacturing the S90 sedan in China, and its electric vehicle brand Polestar, are also affected.
Despite the challenges, the Alliance for Automotive Innovation (AAI), representing numerous automakers, considers the new rules and their timeline balanced. John Bozzella, AAI president and CEO, acknowledged the industry’s support for addressing the security risks while recognizing the time required to adjust complex global supply chains.
Broader Efforts to Address Technological Threats
These measures are part of a wider Biden administration effort to address technological threats posed by China and other adversaries. This includes controlling the export of advanced technologies like AI chips to these nations, as evidenced by a recent updated export rule.
Conclusion: Prioritizing National Security in the Connected Car Era
The finalized regulations underscore the Biden administration’s commitment to safeguarding national security in the face of evolving technological landscapes. While posing challenges for automakers, the rules aim to strike a balance between protecting critical infrastructure and allowing the industry time to adapt to the new requirements. This action reflects a broader strategy to address potential threats posed by foreign adversaries in key technological sectors.
