Federal officials recognized that few Chinese automobiles were currently on US roadways, but pointed out that the administration needed to take proactive steps to strengthen national security.
In an interview, Richard Fontaine, CEO of the Center for a New American Security and author of the recently published book “Lost Decade: The U.S. Pivot to Asia and the Rise of Chinese Power,” stated that the move was an extension of the US effort to build a “high fence around a small yard” of strategically important goods.
“On China tech, it’s clear that the ‘small yard’ is growing in size and will continue no matter who wins the election in November,” stated Mr. Fontaine. “Policymakers of all stripes are increasingly worried about the national security risks that attend Chinese technology, particularly when they imagine what might happen in a confrontation.”
The proposed law would also encompass Russian software, despite the fact that Russia produces essentially nothing that might be banned.
“The precedent is significant, and I think it just reflects the complexities of a world where a lot of connected devices can be weaponized,” said Brad Setser, a senior fellow at the Council on Foreign Relations. “The security competition and rivalry between the United States and China is intensifying. So, there is a chance that this precedent will grow over time.”
Peter Harrell, the National Security Council’s senior director for international economics during the Biden administration, said federal investigators may look into Chinese-made drones, which pose comparable surveillance and safety problems.
“This seems to be opening the door, over a number of years, to a significantly broader governmental set of actions,” says Mr. Harrell.
Although he was unsure whether the Biden administration would be able to do much more before Mr. Biden’s tenure expired, he predicted that the country would “likely see a continuation of this under either Trump or Harris.”
The planned prohibition would cover all wheeled vehicles on the road, including cars, trucks, and buses. It would exclude vehicles that are not utilized on public roadways, such as agriculture or mining.
The ban on Chinese or Russian-origin software in connected and self-driving automobiles would begin in model year 2027. The proposed rule would also prohibit hardware integration into car connectivity systems beginning with model year 2030.
Gina Raimondo, the commerce secretary, recognized that few Chinese or Russian automobiles were currently on US roadways, but stated that the administration wants to take proactive measures to “secure the American people, including our children, from potential surveillance.”
Ms. Raimondo stated that foreign opponents may use their software in connected automobiles to get information on where drivers reside and where their children attend school, among other things. In an extreme circumstance, a foreign opponent could shut down or seize control of all of its cars operating in the United States, causing wrecks and roadblocks, according to Ms. Raimondo.
“This is not about trade or economic advantage,” Ms. Raimondo stated on a press teleconference on Sunday. “This is a strictly national security action.”
The new rule comes after Mr. Biden directed the Commerce Department in February to launch an inquiry into the threat posed by technology implanted in Chinese vehicles.
It also follows actions taken by the Biden administration to limit imports of Chinese cars, which officials fear could harm the administration’s efforts to increase local manufacturing of sustainable energy items.
In May, the Biden administration increased duties on Chinese electric vehicles to 100 percent, in a move to make the vehicles more expensive while also protecting American automakers who are slated to receive billions in federal subsidies. The federal government is providing lucrative tax credits and subsidies to encourage corporations to invest in more electric vehicle, solar, and wind projects. The effort is estimated to cost hundreds of billions of dollars over the next decade.
The administration has also taken steps to limit Chinese companies’ ability to profit from tax incentives that consumers can use to reduce the cost of electric automobiles.
The increase of electronics in cars creates a problem for legislators and automakers. China is an important supplier of technology such as lidar, which utilizes light to detect objects and is essential to many driver-assistance systems. Chinese automakers have also built some of the most advanced autonomous vehicle systems.
Chinese parts, which frequently reach the United States via vendors in Mexico or Canada, have the potential to be utilized for espionage and cyberattacks, several experts warn.
“Foreign adversaries are cornering and leveraging key supply chains for geopolitical and economic ends,” Avery Ash, executive director of the Coalition for Reimagined Mobility, an advocacy group, said in a statement on Monday.
However, American automakers risk slipping behind if they do not have access to cutting-edge technologies. China has the world’s largest car market and leads the production of electric vehicle batteries. Approximately half of all new cars sold in China are electric, allowing Chinese companies to quickly acquire the scale required to lower costs and invest more in R&D.
U.S. manufacturers use “very little” software or hardware from China and support the rules, said John Bozzella, president of the Alliance for Automotive Innovation, which represents the majority of major automakers in washington.
“But this rule will require auto manufacturers in some cases to find alternate suppliers,” Mr. Bozzella said in a statement. “You can’t just flip a switch and change the world’s most complex supply chain overnight.”
He said that certain manufacturers may find the new rule’s advance time insufficient.
In addition to 100 percent tariffs, the requirements could prove to be an insurmountable barrier for Chinese carmakers like BYD, who have been eyeing the United States.