Official announcement from the US Commerce Department

US Proposes Ban on Chinese Vehicle Tech Over National Security Concerns, Effective 2027 and 2030

Sep 23, 2024, 05:24 PM

The Biden administration has proposed new rules to ban Chinese-made software and hardware in connected and autonomous vehicles in the United States, citing national security concerns. The proposed regulations would prohibit car manufacturers from selling vehicles in the US that contain significant components or software from China and Russia. The ban is expected to take effect for model year 2027 for software and 2030 for hardware. Chinese electric vehicle makers such as NIO, Xpeng, and Li Auto have seen their stocks decline following the announcement. The move has drawn criticism from Chinese officials, who label it as discriminatory and a threat to global supply chains. The US Commerce Department's investigation, which began in February, found a range of national security risks associated with embedded software and hardware from China and Russia. The Bureau of Industry and Security is expected to publish the rule. Commerce Secretary Gina Raimondo acknowledged that few Chinese or Russian vehicles are currently on US roads. General Motors and Ford Motor would need to stop importing vehicles from China under the new rule. Beijing has vowed to defend its companies' rights and interests against what it sees as discriminatory practices.