US proposes to ban Chinese software after President Biden and PM Modi's summit

After a recent meeting between President Joe Biden and Indian Prime Minister Narendra Modi at Biden's residence in Delaware, the U.S. Commerce Department announced a plan to ban the sale of connected and autonomous vehicles in the United States that use Chinese and Russian software and hardware. This decision aims to protect national security and safeguard U.S. drivers.

During their discussions, which Modi described as fruitful, Biden expressed strong support for India's bid for a permanent seat on the United Nations Security Council. He also congratulated Modi for his recent visits to Poland and the UK, highlighting the importance of the bilateral relationship between the two nations.

The Commerce Department noted that while there is currently little Chinese and Russian software used in U.S. vehicles, the situation is more complex for hardware. As a result, the proposed ban on software will take effect for the 2027 model year, while the ban on hardware will begin for the 2030 model year, or January 1, 2029, for vehicles without a model year.

This measure is seen as essential because modern vehicles come equipped with advanced technology such as cameras, GPS, microphones, and Bluetooth, which could make American drivers vulnerable to threats. U.S. Secretary of Commerce Gina Raimondo warned that foreign adversaries could potentially take control of vehicles, leading to serious safety risks, including traffic accidents.

Raimondo emphasized that this initiative is not about trade but is strictly a matter of national security. She pointed out that right now, there are not many Chinese or Russian cars on U.S. roads, but other regions where Chinese vehicles have gained popularity serve as a warning for the U.S.

Concerns regarding the software in Chinese vehicles have been raised in Europe, where these cars are quickly gaining market share. Experts have highlighted the significant implications of data control and software updates, touching on issues of national security and individual privacy.

The proposed rule aims to prevent vehicles that communicate via Bluetooth, cellular, satellite, or Wi-Fi from using Chinese or Russian-made components. This also includes software that enables highly autonomous vehicles to operate without a driver. Notably, the ban will apply to all vehicles, but agricultural and mining vehicles used off public roads will be exempt.

To gather insights, the Commerce Department consulted with major auto companies and industry associations while drafting this rule. They are now inviting public comments for 30 days following the rule’s publication, with plans to finalize it by the end of Biden’s term.

This initiative follows earlier actions taken by the Biden administration to address the influx of inexpensive products from China, including electric vehicles, as part of a broader strategy to reduce reliance on foreign sources and enhance domestic manufacturing.