US Moves to Ban Chinese Auto Imports via Software Crackdown, Targeting National Security Concerns

The Biden administration has proposed new rules that would block the sale or import of connected vehicle software from countries of concern, most notably China. This move could effectively ban all vehicle imports from China, as the White House views software and hardware from Chinese-made cars as an “acute” threat to US national security, citing risks of sabotage and surveillance.

The regulations would apply to technologies that connect vehicles to external networks, including Bluetooth, Wi-Fi, cellular, and satellite components. Concerns also extend to vehicle cameras, sensors, and onboard computers potentially being exploited to collect sensitive data.

These rules follow a Commerce Department investigation into connected vehicle software produced in China and other nations considered adversarial. American automakers would be required to phase out Chinese software and hardware over the coming years, with the software ban slated to take effect for model year 2027 and the hardware ban by 2030.

This is part of broader US efforts to curb Chinese influence in the auto industry, including a 100 percent tariff on Chinese electric vehicles and new tariffs on batteries and key minerals. Despite China’s dominance in the production of affordable electric vehicles, US officials fear that allowing imports could harm domestic automakers.

The Biden administration’s proposal is in line with existing trade restrictions and mirrors the EV tax credit rule, which excludes vehicles with Chinese-made battery components from the incentive. The Autonomous Vehicle Industry Association supports the move, praising the administration’s focus on national security.