The Biden administration has proposed new rules that would effectively ban Chinese-made vehicles from U.S. roads after a months-long investigation into software and digital connections that could be used to spy on Americans or jam vehicles.
The proposed rules come as Chinese automakers are growing in power in global markets, exporting large quantities of high-tech vehicles and posing new challenges to Western automakers as governments worry that on-board sensors, cameras and software could be used for espionage and other data-gathering purposes.
Chinese-made vehicles are not yet common on U.S. roads, but they are becoming more common in Europe, Asia and other markets.
The new rules, put forward by the US Chamber of Commerce as a national security measure, focus on software integrated into Vehicle Connectivity Systems (VCS) and Automated Driving Systems (ADS).
“Malevolent access to these systems could allow adversaries to access and collect our most sensitive data and remotely control vehicles on America’s roads,” the Defense Department said in a statement on Sunday.
It added that “certain technologies originating from China and Russia pose disproportionate risks to both U.S. critical infrastructure and connected vehicle users.”
US Commerce Secretary Gina Raimondo said Chinese and Russian-made dash cameras, microphones, GPS tracking devices and other internet-connected technology pose a “very real” threat to American drivers.
“It is not difficult to imagine how a foreign adversary with access to this information could pose serious risks to both our national security and the privacy of Americans,” Raimondo said.
“The reality is that today’s cars, so-called connected cars, are connected to the internet, to GPS, to your home, to microphones, cameras and sensors that can monitor what you do, where you go and what you say. And that brings new risks.”
Software developed by foreign adversaries could be used for surveillance and remote control, threatening the safety and security of Americans on our roads.
“In an extreme situation, a foreign adversary could simultaneously shut down all vehicles operating in the United States, causing collisions, roadblocks and so on,” Raimondo said.
The new rules would ban automakers from selling in the United States cars with key components, software or self-driving systems made in China or Russia that communicate with the outside world.
The measures have been billed as a national security measure, not a trade issue, and the US said it was acting to thwart national security threats before connected cars made in China or equipped with Chinese technology can hit US roads.
The crackdown could mirror years of efforts by Britain, the United States and Europe to crack down on Chinese telecoms giant Huawei Technologies Co., over concerns about China’s undue influence over security infrastructure. Huawei has accused the United States and its Western allies of using national security as a cover to deflect competitive challenges.
But as the United States cracks down on connected and equipped Chinese cars, U.S. automakers have expressed concern that Chinese-made electric vehicles, some of which cost around $10,000, pose a competitive threat in the emerging electric vehicle market.
When Biden announced the investigation into Chinese auto surveillance earlier this year, he stressed his desire to protect American automakers. “This and other actions will ensure that the future of our auto industry is built in America, by American workers,” he said.
US national economic adviser Lael Brainard said Sunday that without new rules, foreign adversaries could “exploit vulnerabilities” and use the integrated characteristics of connected cars to conduct “surveillance and potentially subversive activities on US soil.”
White House national security adviser Jake Sullivan said the administration is aware of a range of national security risks associated with connected cars.
“We already have plenty of evidence that China is proactively planting malware on our critical infrastructure with the intent to disrupt or destroy it, and with potentially millions of vehicles on the roads with life spans of 10 to 15 years, the risk of disruption or destruction increases dramatically,” he said.