The U.S. Commerce Department is set to issue proposed rules on connected vehicles next month, targeting key software components made in China and other countries deemed adversaries. On Tuesday, Alan Estevez, the department’s export controls chief, announced that the focus will be on critical components managing vehicle software and data, which will need to be produced in allied countries.
This move follows Commerce Secretary Gina Raimondo’s statement in May that the department would release rules on Chinese-connected vehicles this autumn. Raimondo mentioned that the Biden administration might take “extreme action,” including banning Chinese-connected vehicles or imposing restrictions, after launching a probe in February into potential national security risks posed by Chinese vehicle imports.
Estevez’s comments at a forum in Colorado are the most definitive to date regarding the administration’s plans for Chinese vehicles, which have raised significant concern. He emphasized the severity of the threat, noting that modern vehicles, equipped with extensive software and network hardware, collect and share vast amounts of data, making them vulnerable to security breaches.
Connected cars, with their integrated network hardware allowing internet access, can share data with both internal and external devices. Estevez highlighted the potential risks, stating, “A car is terrifying. 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. 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.”
In response, the Chinese foreign ministry has urged the United States to respect market economy laws and fair competition principles, arguing that Chinese cars are globally popular due to technological innovation and fierce market competition.
Raimondo warned in May about the catastrophic potential if millions of connected cars had their software disabled. Although the U.S. imports of Chinese-made light-duty vehicles are relatively few, the Biden administration has proposed significant tariff increases on Chinese electric vehicles and other goods, expected to take effect by August 1.
