After a meeting between President Joe Biden and Prime Minister Narendra Modi at the President’s residence in Delaware, the U.S. Commerce Department announced on Monday that it is pursuing a ban on the sale of autonomous and connected vehicles in the U.S. that contain Chinese and Russian software or hardware. The move aims to safeguard national security and protect American drivers.
PM Modi called the discussions with Biden “fruitful,” highlighting that they addressed both global and regional issues. Notably, Biden expressed U.S. support for India’s bid for a permanent seat on the UN Security Council and congratulated Modi on his historic visits to Poland and the UK.
The restrictions on software will be enforced starting with the 2027 model year, while the hardware prohibitions will take effect in 2030, or January 1, 2029, for vehicles without a specific model year. The Commerce Department emphasized the urgency of this action due to the risks posed by modern vehicle technologies—such as microphones, cameras, GPS, and Bluetooth—which could be exploited by foreign adversaries to access sensitive personal information, like home addresses or school locations.
In extreme cases, U.S. Secretary of Commerce Gina Raimondo warned, foreign actors could gain control of multiple vehicles, causing crashes or road blockages. “This is purely a national security measure,” Raimondo stated, noting that there are currently few Chinese or Russian cars in the U.S. but referencing Europe’s experience as a cautionary tale, where Chinese electric vehicles have quickly captured market share.
Janka Oertel, Director of the Asia Program at the European Council on Foreign Relations, pointed out that the issue of who controls data and software updates is deeply intertwined with national security, cybersecurity, and privacy. Some vehicle contracts have already shown that data ends up in China.
The proposed rule would ban the import and sale of vehicles equipped with Chinese or Russian-made software or hardware that enables external communication, including via Bluetooth, cellular, satellite, or Wi-Fi. It would also prohibit autonomous vehicles using such technologies, even if manufactured in the U.S., but would exclude non-road vehicles like those used for agriculture or mining.
Commerce officials have consulted with major global automakers and industry associations to understand the complexities of supply chains, and they are now inviting public comments on the rule, which will be finalized within 30 days of publication. This effort follows other recent moves by the Biden administration to reduce U.S. dependence on Chinese products, including electric vehicles, and bolster domestic industries.
