The security risks posed by Chinese software have been a cause of concern for the US government and lawmakers. According to sources familiar with the matter who spoke to Reuters, the US Department of Commerce is expected to propose a ban on the use of Chinese software in autonomous driving and connected cars in the coming weeks.
The Biden administration plans to issue a proposed rule prohibiting the use of Chinese software in vehicles with L3 level and above autonomous driving capabilities in the United States. This would also prohibit testing of autonomous vehicles produced by Chinese companies on US roads.
Sources added that the US government’s plan will also propose banning vehicles equipped with advanced wireless communication modules developed in China from operating on US roads. According to the proposal, car manufacturers and suppliers will need to verify that their connected cars or advanced autonomous driving software were not developed in China or other concerning locations. The proposal refers to these entities as “concerning foreign entities.”
The US Department of Commerce indicated in July its intention to release proposed rules in August regarding connected cars, which are expected to impose restrictions on software produced in China and other countries considered as competitors.
On August 4th, a spokesperson for the Department of Commerce, in response to requests for comments on the matter, stated that the department is “concerned with national security risks associated with connected technology in cars.”
The Bureau of Industry and Security, a division of the Department of Commerce, will release a proposed rule focusing on specific systems within vehicles that raise concerns, and the industry will have the opportunity to review and provide comments on this proposed rule.
A spokesperson for the Chinese Embassy in Washington said that electric vehicles constitute a global industry. China urges the US to adhere to market principles and international trade rules, creating a fair competitive environment for enterprises from all countries, emphasizing China’s determination to defend its legitimate interests.
On November 16, 2023, bipartisan members of the US House of Representatives wrote to 10 Chinese companies expressing concerns that these companies involved in autonomous driving technology may have improperly collected and used sensitive data of US citizens and infrastructure.
These Chinese companies include Baidu, Nio, WeRide, Didi, Xiaopeng Motors, Inceptio, Pony.ai, AutoX, Deeproute.ai, and QCraft.
The lawmakers requested these companies to address various questions to explain how they handle the testing data collected in the United States related to autonomous driving.
In July of the previous year, US Secretary of Transportation Pete Buttigieg expressed concerns about the operations of Chinese autonomous vehicle companies in the US market, citing potential threats to US national security.
The government is concerned that connected vehicles could use driver monitoring systems to eavesdrop, record passenger conversations, or control the vehicle itself. “The national security risks are significant,” stated US Secretary of Commerce Gina Raimondo in May. “We are taking action because it is indeed a serious matter.”
On July 31st, the White House and State Department hosted a meeting with allies and industry leaders to collectively address national security risks related to connected cars. Officials reportedly disclosed details of the government’s plan to develop regulations during the meeting.
Officials from the US, Australia, Canada, the EU, Germany, India, Japan, South Korea, Spain, and the UK participated in the meeting, where they exchanged views on data and network security risks associated with connected cars and certain components.