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US Proposes Ban on Chinese and Russian Technology in Smart Cars

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The US Commerce Department is planning to propose a ban on the sale or import of smart vehicles, effective for model year 2027, with a focus on vehicles containing "moderate" hardware. The ban is part of a broader effort by the Biden administration to address national security concerns related to data collection by Chinese companies. Specifically, the proposed regulation would target vehicles from China with key communications or automated driving system software or hardware. This move follows a series of actions by the Biden administration, including steep tariff hikes on Chinese goods and a ban on the import or sale of connected vehicles containing Chinese or Russian components. The rationale behind these measures is to prevent foreign adversaries from obtaining data on American driving habits, which is seen as a national security risk.

    1. China opposes the U.S.'s broadening of the concept of national security and the discriminatory actions taken against Chinese companies and products.
    2. We urge the U.S. side to respect market principles and provide an open, fair, transparent, and non-discriminatory business environment for Chinese enterprises.
    1. China's policies could flood our market with its vehicles, posing risks to our national security.
    2. I'm not going to let that happen on my watch.
    1. Yet for far too long, we have seen lack of investment in communities across America and profound obstacles to economic opportunity—including in communities with historic manufacturing expertise such as Detroit.
    2. I believe in an economy where everyone has a chance to compete and a chance to succeed. Investing in the ambitions and aspirations of our people is the best way to grow the American economy and the middle class.
    1. We can't allow for a situation where our auto supply chains are dependent on China.
    2. China is flooding global markets with a wave of auto exports at a time when they are experiencing overcapacity. We have seen this playbook before in the China shock of the early 2000s that harmed our manufacturing communities.
    1. 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.
    2. Cars today have cameras, microphones, GPS tracking and other technologies connected to the internet. It doesn't take much imagination to understand how a foreign adversary with access to this information could pose a serious risk to both our national security and the privacy of U.S. citizens.
    3. This is not about trade or economic advantage.
    4. You can imagine the most catastrophic outcome theoretically if you had a couple million cars on the road and the software were disabled.
    5. When foreign adversaries build software to make a vehicle [connected], that means it can be used for surveillance, can be remotely controlled, which threatens the privacy and safety of Americans on the road.
    6. 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.
    1. We've already seen ample evidence that [China] pre-positioned malware in our critical infrastructure for the purpose of disruption and sabotage. And with potentially millions of vehicles on the road, each with 10- to 15-year life spans, the risks of disruption and sabotage increase dramatically.
    1. There's actually very little technology—hardware or software—in today's connected vehicle supply chain that enters the US from China. But this rule will require auto manufacturers in some cases to find alternate suppliers.