US to Ban Chinese Software in Self-Driving Vehicles

The United States Commerce Department is preparing to propose a ban on Chinese software in autonomous and connected vehicles, aiming to address national security concerns. 

The proposed rule targets vehicles with Level 3 automation and above, effectively prohibiting the testing and operation of such autonomous vehicles produced by Chinese companies on US roads. Additionally, vehicles equipped with advanced wireless communication modules developed in China will also face restrictions. Automakers and suppliers will be required to certify that their connected vehicle software is not sourced from entities deemed a "foreign entity of concern," including China.

"The department is concerned about the national security risks associated with connected technologies in connected vehicles," said a spokesperson of the Commerce Department. The department’s Bureau of Industry and Security will release the proposed rule, focusing on specific vehicle systems, and will allow the industry to review and comment on it.

"Only division of labor and cooperation can bring mutual benefits, and only fair competition can bring technological progress," stated a spokesperson of the Chinese Embassy in Washington, adding that China would defend its lawful rights and interests.

In a recent meeting hosted by the White House and State Department, officials from the US and allied countries discussed the national security risks associated with connected vehicles. The meeting included representatives from Australia, Canada, the European Union, Germany, India, Japan, South Korea, Spain, and the United Kingdom. They exchanged views on the data and cybersecurity risks tied to connected vehicles and certain components.

The proposed ban reflects increasing concerns over Chinese companies collecting and managing sensitive data through their autonomous vehicles tested in the US. In a letter sent in November, US lawmakers expressed worries about Chinese firms collecting and handling sensitive data. The letter highlighted that Chinese autonomous vehicle companies drove over 450,000 miles in California in the year ending November 2022. US Transportation Secretary Pete Buttigieg also raised national security concerns about these companies in July 2023.

"The national security risks are quite significant. We decided to take action because this is really serious stuff,” said Gina Raimongo, Commerce Secretary. 

Chinese experts argue that the proposed US ban could harm global cooperation and development in the autonomous vehicle sector. Li Yong, Senior Researcher, China Association of International Trade, stated that the ban reflects the US's attempts to restrain China for political reasons. He emphasized that global cooperation is essential for the development of autonomous vehicles due to the sector’s large ecosystem and high R&D costs. "If the US excludes Chinese companies, the move would delay the global commercialization of autonomous vehicles," Li said.

Zhang Xiang, Secretary-General, International Intelligent Vehicle Engineering Association, echoed similar sentiments. He pointed out that United States and Chinese companies complement each other in the sector. "US firms can quickly and economically obtain advanced technologies from China, while Chinese companies can expand their market share with increasing profits," Zhang said.