US to propose ban on smart vehicles with Chinese and Russian technology

Washington, DC [US]: The US Commerce Department on Monday will propose a ban on the sale or import of smart vehicles that use specific Chinese or Russian technology due to national security concerns, CNN reported, citing US officials.
While speaking to reporters in a conference call on Sunday, US Secretary of Commerce Gina Raimondo said that a US government probe that started in February found various national security risks from embedded software and hardware from China and Russia in US vehicles, including the possibility of remote sabotage by hacking and the collection of personal data on drivers.
She stated, "In extreme situations, a foreign adversary could shut down or take control of all their vehicles operating in the United States, all at the same time, causing crashes (or) blocking roads."
Speaking to CNN, a senior administration official said that the rule will not be applicable to the cars already on the road in the US that already have Chinese software installed.
According to the US Commerce Department , the software ban would come into effect for vehicles for "model year" 2027 and the hardware ban for "model year" 2030.
The proposed regulatory action is part of a much broader struggle between the US and China to secure the supply chains of the key computing technology of the future, from semiconductors to AI.
US officials are worried as China, especially, has invested in the connected car market and inroads made by Chinese manufacturers in Europe.
The US Commerce Department's proposed rule will be applicable on "connected vehicles," a broad term for virtually any modern car, bus or truck that uses network connections for roadside assistance, satellite communications or a range of other features.
It covers hardware and software that interact with key technology that allows a vehicle to communicate with the outside world, like Bluetooth, WiFi and cellular technology.
Speaking to reporters, a senior administration official said there will be a 30-day public comment period on the proposed rule and the Commerce Department aims to issue a final regulation before the end of the Biden administration.
The official said that the US administration will release an economic analysis of the expected costs for automakers and consumers to comply with the proposed rule on Monday.
Raimondo stressed that Monday's announcement was not a protectionist move. She said, "This is not about trade or economic advantage."
She said, "This is a strictly national security action." She stated, "If (China) or Russia, for example, could collect data on where the driver lives or what school their kids go to, where (their) doctor is, that's data that would leave that American vulnerable."
US officials have been concerned that electric charging stations and other infrastructure outfitted with certain hardware or software could be exploited by hackers with ties to China, Russia or other foreign powers.
Speaking to reporters on the conference call, White House national security adviser Jake Sullivan said that US has seen ample evidence of China's pre-positioning malware on US' critical infrastructure for the purpose of disruption and sabotage.
Sullivan said, "We've already seen ample evidence of the PRC pre-positioning malware on our critical infrastructure for the purpose of disruption and sabotage.
He further said, "If millions more smart cars with vulnerable, Chinese-made tech are on US roads, "the risk of disruption and sabotage increases dramatically."
The Chinese government has rejected US allegations that its hackers have embedded in US infrastructure.
In a statement, Chinese Foreign Ministry spokesperson Lin Jian said, "China opposes the US's broadening of the concept of national security and the discriminatory actions taken against Chinese companies and products."
"We urge the US side to respect market principles and provide an open, fair, transparent, and non-discriminatory business environment for Chinese enterprises," Lin added.
Earlier in June, the US Commerce Department imposed a ban on the sale and provision of certain products and services manufactured by Russian cybersecurity firm Kaspersky Lab, whose anti-virus software is used by millions of people around the world.