In a move that could further escalate the trade tensions between the US and China, the American administration is seriously considering a ban on Chinese software and hardware in connected and autonomous vehicles. This proposal, cited in a Reuters report, stems from deep-seated national security concerns.
The US authorities are worried about the potential for Chinese companies to collect data on American drivers and infrastructure. They are also concerned about the possibility of foreign actors manipulating vehicles connected to the internet and navigation systems. The proposed regulation would effectively prohibit the import and sale of vehicles from China that utilize software or hardware from Chinese companies in their key communication or automated driving systems.
China has strongly condemned this potential US policy, calling it discriminatory and urging the US to respect market principles and provide a fair and transparent business environment for Chinese companies. According to a report by AFP, Chinese Foreign Ministry spokesperson Lin Jian emphasized that China opposes the broadening of the concept of national security by the US and rejects the discriminatory actions taken against Chinese companies and products. China has vowed to protect its legitimate rights and interests in the face of this proposed ban.
This move comes after US Commerce Secretary Gina Raimondo raised concerns about the potential risks of Chinese software and hardware in connected vehicles back in May. She highlighted the catastrophic consequences that could arise if millions of cars on the road were to have their software disabled. Earlier this year, in February, President Joe Biden ordered an investigation into whether Chinese vehicle imports posed a threat to national security due to their connected car technology. This investigation aimed to determine if such software and hardware should be banned from all vehicles on US roads.
The potential ban on Chinese software and hardware in connected vehicles adds another layer to the already strained trade relationship between the US and China. Last week, the US government imposed significant tariff hikes on Chinese imports, including a 100% duty on electric vehicles and new tariffs on EV batteries and essential minerals. The proposed prohibition on Chinese technology in vehicles would also extend to other foreign adversaries of the US, including Russia.
