U.S. To Propose New Regulations On Chinese Vehicle Software

The U.S. Commerce Department is gearing up to propose new regulations next month to limit certain vehicle software made in China and other countries considered adversaries. A senior official announced this move on Tuesday. It is part of a broader effort to enhance national security by controlling critical components used in connected vehicles.

Focus on Key Driver Components –

Alan Estevez, the Commerce Under Secretary for Industry and Security, shared details at a forum in Colorado. He explained that the proposed rules would target specific vital components and software in connected vehicles rather than the entire car. These targeted components include those that manage the vehicle’s software and data, which must be sourced from allied countries.

“We’re looking at a few components and some software — not the whole car — but it would be some of the key driver components of the vehicle that manage the software and manage the data around that car that would have to be made in an allied country,” Estevez stated.

National Security Concerns – 

Connected vehicles, which have onboard integrated network hardware for internet access, can share data with devices both inside and outside the vehicle. Estevez emphasized the serious threat posed by foreign-made software in these cars. He highlighted that modern cars, whether electric or autonomous combustion engine vehicles, contain extensive software capable of gathering detailed information about the user.

“A car is a very scary thing. Your car knows a lot about you. Your car probably gets a software update, whether it’s an electric vehicle or an autonomous combustion engine vehicle,” Estevez said. “A modern car has a lot of software in it. It’s taking lots of pictures. It has a drive system. It’s connected to your phone. It knows who you call. It knows where you go. It knows a lot about you.”

Previous Statements and Future Actions –

In May, Commerce Secretary Gina Raimondo indicated that the department planned to issue proposed rules on Chinese-connected vehicles this autumn. She mentioned the possibility of taking “extreme action,” including banning Chinese-connected vehicles or imposing restrictions, following a probe launched in February into whether Chinese vehicle imports posed national security risks.

Estevez’s recent comments are the clearest indication yet of the administration’s plans regarding Chinese vehicles, which have sparked significant concern. The Chinese foreign ministry has previously urged the United States to adhere to market economy laws and principles of fair competition, arguing that Chinese cars are popular globally due to their technological innovation and competitive edge.

Potential Impact on the Market – 

Although the United States imports few Chinese-made light-duty vehicles, the Biden administration’s stance includes proposed sharp increases in tariffs on Chinese EVs and other goods, expected to take effect by August 1.

Commerce Secretary Raimondo highlighted the potential risks, saying, “You can imagine the most catastrophic outcome theoretically if you had a couple of million cars on the road and the software was disabled.”

The proposed regulations aim to mitigate such risks by ensuring that critical vehicle components are sourced from trusted allies, thereby safeguarding connected vehicles’ data and software integrity in the U.S. market. This move represents a significant step in the ongoing efforts to balance technological advancements with national security concerns.

Source: Reuters