US-China relations may see big hit with likely ban on these Chinese software and hardware

The US Commerce Department is set to announce a significant new regulation aimed at addressing national security concerns posed by Chinese technology in connected and autonomous vehicles. According to a report by news agency Reuters, quoting sources familiar with the matter, the department will propose prohibiting the import and sale of vehicles from China that use Chinese-made software or hardware in key communications or automated driving systems.
The Biden administration has expressed deep concerns about the potential for Chinese companies to collect sensitive data on US drivers and infrastructure, as well as the risk of foreign manipulation of internet-connected vehicles.The proposed ban represents a significant escalation in the US government’s efforts to limit the influence of Chinese technology in the American market.

Car Hacking Fears

Commerce Secretary Gina Raimondo said in May 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 reportedly said.
The Commerce Department plans to provide a 30-day public comment period before finalizing the rules. The proposed prohibitions would extend to vehicles with certain Bluetooth, satellite, and wireless features, as well as highly autonomous vehicles capable of operating without a human driver.

Car Makers Not in Favour of Ban

The move is expected to face opposition from the automotive industry, which has warned that changing hardware and software in vehicles. While there are relatively few Chinese-made light-duty vehicles imported into the US, the proposed regulation would have broader implications for the security of the connected vehicle supply chain.
A trade group representing major automakers including General Motors, Toyota Motor, Volkswagen, Hyundai and others had reportedly warned that changing hardware and software would take time and is costly. The carmakers noted that their systems “undergo extensive pre-production engineering, testing, and validation processes and, in general, cannot be easily swapped with systems or components from a different supplier.”