U.S. Department of Commerce announcements or major news outlets

U.S. Bans Chinese, Russian Tech in Connected Vehicles Starting 2027, Impacting Polestar

Jan 14, 2025, 03:45 PM

The Biden administration has finalized a rule that effectively bans the import and sale of connected vehicles containing Chinese and Russian software and hardware in the U.S., citing national security concerns. The rule, announced by the Department of Commerce, targets components and software with a 'sufficient nexus' to China or Russia. It will be phased in, with software restrictions starting in 2027 and hardware restrictions in 2029. The ban does not currently apply to vehicles weighing over 10,000 pounds, such as buses and trucks, which will be addressed in future regulations. This move is part of broader efforts to protect the U.S. automotive supply chain from external threats and prevent adversaries from collecting data on American citizens through connected vehicles, which Commerce Secretary Gina Raimondo described as 'computers on wheels.' The rule could impact companies like Polestar, which has expressed concerns about its ability to sell electric vehicles in the U.S. Meanwhile, BYD continues to sell buses in California, which are exempt from the current ban.