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 sabotage vehicles.
The proposed rules come as Chinese automakers grow more powerful in global markets, exporting a flood of high-tech vehicles and posing new challenges to Western manufacturers, and as governments fear that installed sensors, cameras and software could be used for spying or other data-gathering purposes.
Vehicles made in China are not yet widely seen on American roads, but they are becoming more common in Europe, Asia and other markets.
The new rules, described as a national security measure by the U.S. Chamber of Commerce, focus on the Vehicle Connectivity System (VCS) and software embedded in the Automated Driving System (ADS).
“Malicious access to these systems could allow adversaries to access and collect our most sensitive data and remotely manipulate vehicles on American roads,” the department said in a statement Sunday.
He added: “Certain technologies originating in the People’s Republic of China or Russia pose undue risk to both critical U.S. infrastructure and those using connected vehicles.”
U.S. Commerce Secretary Gina Raimondo said Chinese- or Russian-made cameras, microphones, GPS tracking systems and other internet-connected technology in vehicles posed a “very real” threat to American drivers.
“It doesn’t take much imagination to understand how a foreign adversary with access to this information could pose a serious risk to both our national security and the privacy of American citizens,” Raimondo said.
“The reality is that today’s cars, or what we call connected vehicles, are connected to the internet, to GPS, to homes, 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 can be used for remote surveillance and control, threatening the safety of Americans on the roads.
“In an extreme situation, a foreign adversary could stop operating in order to take control of all of your vehicles operating in the United States at the same time, causing accidents, roadblocks, etc.,” Raimondo said.
The new rules prohibit automakers from selling cars in the United States with significant components or software from China and Russia that communicate externally, as well as autonomous driving systems.
The move is being characterized as a national security measure rather than a trade issue. The US said it was acting now to deter any national security threats before connected vehicles made in China or equipped with Chinese technology are on US roads.
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The crackdown could be similar to a long-standing crackdown by the UK, US and Europe against Chinese telecoms giant Huawei over fears of undue Chinese influence on infrastructure security. Huawei has accused the US and its Western allies of using national security as an excuse to fend off competitive challenges.
But the U.S. crackdown on Chinese connected or equipped vehicles comes at a time when American automakers have expressed alarm that Chinese-made electric vehicles, including some costing as little as $10,000, also pose a competitive threat in the emerging electric vehicle market.
When Biden announced the investigation into the issue of Chinese vehicle surveillance earlier this year, he stressed his desire to protect American automakers. “With this and other measures, we are going to make sure that the future of the auto industry is made here in the United States, with American workers,” he said.
On Sunday, U.S. national economic adviser Lael Brainard said that without the new rules, foreign adversaries could “exploit vulnerabilities” and take advantage of the integrated nature of connected vehicles to conduct “surveillance or potential sabotage here on American soil.”
White House national security adviser Jake Sullivan said the administration had identified a variety of national security risks associated with connected vehicles.
“We have already seen ample evidence that the People’s Republic of China has planted malware in our critical infrastructure in order to disrupt and sabotage it. And with millions of vehicles on the road, each with a lifespan of 10 to 15 years, the risk of disruption and sabotage increases dramatically,” he said.