The U.S. Commerce Department is anticipated to propose a ban on Chinese software in autonomous and connected vehicles in the coming weeks, according to sources familiar with the matter. The Biden administration's proposed rule would prohibit the use of Chinese software in vehicles with Level 3 automation and above, effectively banning the testing of autonomous vehicles produced by Chinese companies on U.S. roads. This proposal aims to address national security concerns related to the integration of advanced wireless communication technologies in vehicles.
The forthcoming rule would require automakers and suppliers to verify that their connected or autonomous vehicle software was not developed in a "foreign entity of concern" such as China. The Commerce Department indicated last month its intention to issue rules on connected vehicles in August, focusing on limiting software from China and other adversarial nations. A Commerce Department spokesperson emphasized the national security risks associated with connected technologies in vehicles. Industry stakeholders will have the opportunity to review and comment on the proposed rule.
Market Overview:
- U.S. Commerce Department to propose banning Chinese software in autonomous vehicles.
- Proposal targets vehicles with Level 3 automation and above.
- National security concerns drive the regulatory move.
Key Points:
- Automakers must verify software origins, excluding Chinese-developed software.
- Proposal includes a ban on advanced wireless communication modules from China.
- Industry to review and comment on the proposed rule.
Looking Ahead:
- Potential impacts on Chinese AV companies testing in the U.S.
- National security considerations in connected vehicle technologies.
- International collaboration on cybersecurity risks in autonomous vehicles.
The proposed ban underscores the U.S. administration's heightened focus on national security risks associated with advanced technologies in connected vehicles. By excluding Chinese software, the U.S. aims to mitigate potential threats posed by data collection and system control by foreign entities. This regulatory shift may significantly impact Chinese companies operating in the U.S. autonomous vehicle market, prompting broader industry adjustments to comply with new security standards.
The international response to the proposed rule will be crucial, as allied nations and industry leaders collaborate to address shared cybersecurity concerns. The evolving regulatory landscape emphasizes the need for robust security measures in the rapidly advancing field of autonomous and connected vehicles.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
