President Biden has announced new measures to protect the United States from national security risks linked to connected vehicle technology originating from China and Russia. The administration is focused on ensuring that automotive supply chains remain secure against potential cyber threats from foreign adversaries.
The Department of Commerce has issued a final rule prohibiting the sale and import of connected vehicle hardware, software systems, and completed vehicles from China and Russia. This decision concludes a thorough regulatory process initiated by President Biden last year.
Connected vehicles, equipped with Wi-Fi, Bluetooth, cellular, and satellite connectivity, offer increased convenience and safety. However, foreign involvement in these supply chains poses significant threats due to potential access to sensitive data collected by these systems. President Biden aims to safeguard critical American supply chains through this regulation.
The rule also addresses concerns over cyber espionage activities conducted by Chinese state-sponsored actors like Volt Typhoon. These actors have engaged in hacking campaigns targeting U.S. infrastructure. Similarly, Russia remains a threat with its history of cyberattacks on U.S. systems. The regulation aims to protect the transportation system vital for commerce and daily life from such risks.
Beyond infrastructure concerns, the Department of Commerce warns that certain connected vehicle technologies could enable mass collection of sensitive information such as geolocation data and audio or video recordings.
This final rule results from a year-long examination involving consultations with industry experts and international partners. It bans the import or sale of connected vehicle systems developed or supplied by entities tied to China or Russia. This includes connectivity systems (VCS) and automated driving systems (ADS). Restrictions on software will begin with Model Year 2027, while hardware restrictions will start with Model Year 2030.
Additionally, there is a prohibition on selling connected vehicles in the U.S. by entities controlled by China or Russia starting with Model Year 2027, even if manufactured domestically.
While this rule currently applies only to passenger vehicles, the Department of Commerce plans further regulations for commercial vehicles over 10,000 pounds due to their unique national security risks.
The development of this rule involved consultations with industry stakeholders to balance national security protection with market stability. The Biden-Harris Administration has also engaged international allies through meetings aimed at establishing cybersecurity standards for connected vehicles.
Commerce and other agencies will continue collaborating with industry partners as the rule is implemented.
