US to propose barring Chinese software, hardware in connected vehicles, sources say By Reuters

WASHINGTON (Reuters) – The U.S. Commerce Department is expected to propose on Monday banning the use of Chinese software and hardware in connected and autonomous vehicles on U.S. roads over national security concerns, sources told Reuters.

The Biden administration has raised serious concerns about Chinese companies’ collection of data on U.S. drivers and infrastructure, as well as potential foreign manipulation of connected vehicles. The proposed regulation would ban the import and sale of vehicles from China that contain key communications software or hardware or automated driving systems.

The department plans to give the public 30 days to comment before any rules are finalized, the sources said, adding that the department plans to propose making the software ban effective in the 2027 model year, and the hardware ban would go into effect in January 2029. The Commerce Department declined to comment Saturday.