Chinese Software and Hardware Ban: Implications for Connected Vehicles and Electric Cars

Chinese Software and Hardware Ban: Implications for Connected Vehicles

Citing national security concerns, the US administration is mulling a ban on Chinese software and hardware in connected and autonomous vehicles on American roads, said a Reuters report. The American authorities raise serious concerns about the collection of data by Chinese companies on US drivers and infrastructure as well as the potential foreign manipulation of vehicles connected to the internet and navigation systems, said the report.

The proposed regulation would ban the import and sale of vehicles from China with key communications or automated driving system software or hardware, reported two sources.

China's Response to US Trade Ban

Slamming the expected US proposal, China warned not to take discriminatory actions against its companies. According to a report by news agency AFP, foreign ministry spokesman Lin Jian urged the US to respect market principles and provide an open, fair, transparent, and non-discriminatory business environment for Chinese enterprises. China opposes the US’s broadening of national security concepts and discriminatory actions against its companies and products.

Risks Associated with Chinese Tech

In May, US Commerce Secretary Gina Raimondo said the risks of Chinese software or hardware in connected US vehicles were significant. “You can imagine the most catastrophic outcome theoretically if you had a couple million cars on the road and the software were disabled,” she stated. In February, President Joe Biden ordered a probe into whether Chinese vehicle imports pose national security risks over connected-car technology.

Escalating Trade Tensions

This ban could further escalate the simmering trade row between the US and China. Last week, the US government imposed steep tariff hikes on Chinese imports, including a 100% duty on electric vehicles as well as new hikes on EV batteries and key minerals. The prohibitions may extend to other foreign adversaries of the US, including Russia.