US to propose barring Chinese software, hardware in connected vehicles, sources say

WASHINGTON (Reuters) – The U.S. Commerce Department is expected on Monday to propose prohibiting Chinese software and hardware in connected and autonomous vehicles on U.S. roads due to national security concerns, sources told Reuters.

The Biden administration has raised serious concerns about the collection of data by Chinese companies on U.S. drivers and infrastructure as well as the potential foreign manipulation of connected vehicles. The proposed regulation would ban the import and sale of vehicles from China with key communications or automated driving system software or hardware.

The department plans to give the public 30 days to comment before any finalization of the rules, the sources said, adding that the department plans to propose making the prohibitions on software effective in the 2027 model year and the prohibitions on hardware would take effect in January 2029. The Commerce Department declined to comment on Saturday.