Biden administration proposes ban on cars with Chinese and Russian ‘smart’ tech

The Biden administration proposed rules Monday prohibiting the sale or import of “smart” cars that have certain technology from China or Russia, citing national security concerns.

The Commerce Department said that, while connected vehicles offer new safety features and navigation tools, they also pose “new and growing threats.”

U.S. officials are worried about malicious actors using malware against vehicles, collecting information on where Americans go to school or work and, in extreme situations, finding ways to stop vehicles from afar.

“Certain hardware and software in connected vehicles enable the capture of information about geographic areas or critical infrastructure, and present opportunities for malicious actors to disrupt the operations of infrastructure or the vehicles themselves,” the White House said in a fact sheet. “Commerce has determined that certain technologies used in connected vehicles from [China] and Russia present particularly acute threats.”

The action is part of growing concern about malign interference and data collection from nations the U.S. considers untrustworthy.

The U.S. government has taken action in recent years to scrutinize or curtail China-linked technologies such as the TikTok social media platform and Huawei technology, and it has sanctioned Russia for its invasion of Ukraine and warned the Kremlin to stop interfering in U.S. elections through online chicanery.

The move is also a way to bolster the U.S. auto industry over Chinese electric vehicles, or EVs.

Mr. Biden recently increased a tariff on Chinese EVs from 25% to 100%, and his signature tax and climate legislation conditioned a $7,500 EV tax credit for vehicles to products made in America.

Former President Donald Trump says Mr. Biden’s push to transition the American auto fleet toward EVs — through tough tailpipe emissions rules — will undercut American workers and elevate Chinese industry. The GOP presidential nominee says consumers should be able to choose gas-powered vehicles if they want them.

The Commerce Department is taking pains to characterize its crackdown on Chinese and Russian components as a national security move, and not one aimed at trade leverage.

The department took specific aim Monday at “vehicle connectivity systems” that connect the vehicle to the outside world through Bluetooth, cellular, satellite and Wi-Fi equipment, and “automated driving systems” that allow autonomous vehicles to operate without a driver behind the wheel.

Prohibitions on software would take effect for the model year 2027, and the prohibitions on hardware would take effect for model year 2030.

The administration said it would consult with the auto industry during the rulemaking process to bolster national security while minimizing “unintended consequences or disruptions.”