To strengthen national security, the Biden administration has announced plans to ban software and certain hardware from Chinese companies in vehicles connected to the internet across the United States. This proposed ban targets software officials say poses “new threats to our national security, including through our supply chains.”
The administration's latest measure is similar to previous actions against Chinese tech companies such as Huawei and ZTE, who were accused of aiding China's surveillance efforts. There is growing concern that China may exploit internet-connected vehicle technology for espionage and sabotage, jeopardising the country's security.
Concerns extend beyond software to hardware
The proposed ban covers more than just software. Any hardware that connects a vehicle to external networks will also be restricted. This includes Bluetooth, cellular, Wi-Fi, satellite systems, cameras, sensors, and onboard computers. The aim is to prevent any potential surveillance or cyberattacks that could be carried out through these devices.
The new rules would be introduced in two stages. The ban on software would come into effect starting with vehicles in model year 2027. The restrictions on hardware, however, would be delayed until model year 2030. This phased approach gives automakers time to adjust their production processes and ensure their vehicles meet the new security standards.
Impact on Chinese and Russian imports
While the primary focus of the ban is on internet-connected software, the new regulations would likely prevent most Chinese vehicles from being imported to the US. This is because many Chinese electric vehicles (EVs) are already equipped with the types of software and hardware the ban targets. The Chinese auto industry, known for producing affordable EVs like the BYD Seagull, would face significant challenges in accessing the American market under the new rules. Tariffs have already made importing Chinese EVs costly, and this ban would create an additional barrier, making it nearly impossible for Chinese carmakers to sell in the US.
The proposed ban also targets Russian auto software. While Russia has a growing EV sector, it primarily serves the domestic market, and its vehicles are not in high demand globally. The Biden administration's proposal underscores the primary concern with Chinese technology, which is more widely used in internet-connected cars worldwide.
A focus on national security
US government officials remain adamant that the proposed ban is intended to protect national security rather than block Chinese EVs from entering the US market. President Biden's national security adviser, Jake Sullivan, highlighted the risks posed by connected vehicles and technologies developed in China and other “countries of concern.” Sullivan's remarks were shared with reporters, emphasising that connected vehicles could bring new vulnerabilities if not properly regulated.
Sullivan also referenced an alleged Chinese cyber-attack program called Volt Typhoon, which reportedly aims to install malicious software into critical American infrastructure, including power grids and pipelines. The fear is that such programs could be used to cripple military bases and other essential systems in the event of an international conflict, such as a potential Chinese invasion of Taiwan.
Former National Security Council official Peter Harrell stated that the Biden administration's actions could mark the beginning of broader government measures over the coming years. These measures may be expanded and maintained regardless of the outcome of future US elections.
Despite the security concerns, the ban could affect the availability of affordable electric vehicles in the US. The BYD Seagull, for instance, is priced at approximately US$10,000, and even with tariffs, it remains a competitively priced option for American consumers. However, with these new restrictions, it seems unlikely that budget-friendly Chinese EVs will be widely available in the US anytime soon.
