U.S. moves to ban Chinese software, hardware from all vehicles in America

globalnews.ca:

The U.S. government is proposing a ban on key Chinese software and hardware in connected vehicles on American roads due to national security concerns, the White House announced Monday.

The move marks the latest crackdown on China’s automotive industry by the Biden administration and would effectively bar all Chinese cars from entering the U.S. market. It also raises questions about whether Canada will do the same, after matching America’s lead in slapping high tariffs on Chinese electric vehicles and weighing further restrictions.

The planned regulation by the U.S. Commerce Department, which still needs to be finalized, would also force American and other major automakers in the coming years to remove key Chinese software and hardware from vehicles in the U.S.

A fact sheet from the White House says the proposed rule targets technology and components imported from “countries of concern,” which also includes Russia.

“When foreign adversaries build software to make a vehicle, that means it can be used for surveillance, can be remotely controlled, which threatens the privacy and safety of Americans on the road,” U.S. Commerce Secretary Gina Raimondo told a press briefing.

“In an extreme situation, a foreign adversary could shut down or take control of all their vehicles operating in the United States all at the same time — causing crashes, blocking roads.”

But China has become a particular focus amid fears Beijing is seeking to flood the global market with low-cost EVs through substantial government subsidies that have fast-tracked domestic production.

The Biden administration this summer said it was imposing a 100 per cent tariff on Chinese-made electric vehicles and a 35 per cent duty on imported components like batteries