The US is preparing to ban Chinese automotive software and hardware.

The Biden administration has expressed growing concern about the potential risks posed by Chinese companies collecting sensitive data from American drivers and infrastructure. There are also concerns about the possibility of foreign actors manipulating vehicles equipped with internet connectivity and advanced navigation technology.

Two anonymous sources said the proposed regulations would ban the import and sale of vehicles from China that have critical communication system software or hardware or autonomous driving systems. They declined to be named because the decision has not yet been publicly announced.

This potential ban follows a series of U.S. restrictions targeting imports from China. Previously, the Biden administration imposed high tariffs on Chinese imports, including a 100% tariff on electric vehicles, along with new tariffs on batteries and critical minerals necessary for electric vehicle production.

US Commerce Secretary Gina Raimondo stated last May that the risks posed by Chinese software or hardware in US connected devices are a serious concern.

She stated, "Theoretically, you can imagine the catastrophic consequences if there were several million cars on the road and the software was disabled."

Earlier in February, President Joe Biden also ordered an investigation into whether imports of vehicles from China pose a national security risk related to connected car technology and whether that software and hardware should be banned from all vehicles on U.S. roads.

The U.S. Commerce Department plans to publicly release a draft plan for public comment within 30 days before finalization. Almost all newer vehicles on U.S. roads are considered "connected." Such vehicles have integrated network hardware that allows internet access, enabling them to share data with devices both inside and outside the vehicle.

If approved, the software ban is expected to take effect from the production year 2027. The banned software could include applications related to wireless connectivity features such as Bluetooth, GPS, and other infotainment systems. The ban aims to minimize the risk of cyberattacks and protect users' personal data.

For hardware, the ban will take effect in January 2029 or the production year 2030 (depending on the progress of research and development). Affected hardware could include satellite connectivity modules, sensors and controllers for autonomous driving systems, as well as other hardware components related to vehicle automation features.

Meanwhile, advanced autonomous vehicles, capable of operating completely automatically without driver intervention, will be banned from circulation until safety and security regulations are finalized.

Last November, a group of U.S. lawmakers from both the Democratic and Republican parties collectively raised concerns about the growing worry that Chinese automotive and technology companies are collecting and processing sensitive personal data of American users during the testing and development of autonomous vehicles for the U.S. market.

According to reliable sources, this ban is not limited to targeting Chinese companies but could also be extended to other American competitors from countries such as Russia, in order to protect national security interests and maintain America's leading position in autonomous vehicle technology.

This proposal has raised concerns in the automotive industry, with global automotive giants such as General Motors, Toyota, Volkswagen, Hyundai, and many others warning of serious difficulties and challenges if the government imposes a ban on hardware and software manufactured by Chinese companies. According to these automakers, replacing entire or partial existing systems with alternatives would be an extremely complex and time-consuming process.

Automakers emphasize that the electronic systems in modern cars are the result of complex research, development, and integration processes, requiring perfect compatibility between hardware and software. Any changes to these systems must undergo a rigorous testing process, including thorough technical inspections, safety and reliability tests, and quality assurance procedures.

According to an official announcement posted on the government website, the White House has officially approved the final version of new regulations aimed at strengthening cybersecurity for the automotive industry. This regulation marks a significant step in the government's broader effort to protect the supply chain for connected vehicles in the U.S. from potential cybersecurity risks.

However, according to the report, this regulation will not apply to specialized vehicles used in agriculture or mining. This exclusion aims to facilitate specific industries while minimizing negative impacts on business operations.