US Government outlines ban on Chinese technology in connected cars – UPDATE

UPDATE, Tuesday 24 September 2024: Details of the US Commerce Department's plans to prohibit the use of hardware and software from China in new cars have now been outlined.

The US Government has confirmed its intention to stop Chinese technology from being used in autonomous and connected cars sold in the US, with concerns they could share sensitive information with entities overseas – or be shut down remotely.

The limitations on software from China could be imposed as soon as 2026, with a ban on Chinese hardware – such as semiconductors and control units – to come into effect in 2029.

While less commonplace in the new-car market, similar measures could be enacted on hardware and software sourced from Russia.

According to The Age and Sydney Morning Herald (SMH), the Australian Government is monitoring developments, with the Australian Department of Home Affairs confirming it had been communicating with the US Government about the plan.

MORE: The cars you didn’t know were built in China

A statement from Home Affairs issued to The Age and SMH said it "has been proactively engaging with the US government to understand the implications of any proposed regulation," but did not confirm whether the Australian Government was considering similar prohibitions.

A US lobby group representing major car companies including Hyundai, GM, Toyota, and Volkswagen, told news outlet Reuters there is "very little" Chinese-made connected hardware in new cars sold in the US, but such a ban would force car makers to find alternative suppliers in some cases.

Such a widespread ban would almost certainly put an end to the Chinese manufacture of some new cars – including some made by General Motors, Ford, and Volvo.

While the prospect of espionage and sabotage has been floated by government officials as the reasons behind the proposed bans, it could also severely limit plans by Chinese car companies to build their vehicles in Mexico using Chinese parts and software – a move which would side-step significant import tariffs on electric vehicles from China.

Our original story continues unchanged below.

Monday 23 September 2024: The US could soon ban software and hardware manufactured by Chinese companies for use in new cars due to security concerns, unnamed sources say.

According to a report from news outlet Reuters, the US Commerce Department is expected to put forward a proposal that bans Chinese technology in vehicles which can connect via satellite or mobile networks.

The ban would also include Chinese-made autonomous vehicles.

The unconfirmed report comes less than a fortnight after US officials locked in 100 per cent tariffs on electric vehicles from China, along with a 50 per cent duty on semiconductors and solar cells.

Electric-car batteries and minerals from China have been hit with a 25 per cent tariff, along with steel and aluminium.

MORE: European Union lowers proposed tariffs for Chinese-built electric vehicles

As reported in August 2024, the US Government has raised concerns over autonomous cars developed by Chinese companies over "national security risks" – but could keep the door open for US car makers to continue manufacturing and selling vehicles built in China.

A year earlier, the head of a leading UK motoring organisation publicly claimed there "major security issues" with Chinese-made electric cars, accusing them of being "trojan horses" which could be remotely disabled if desired.

While experts downplayed the claims at the time as "scaremongering", this week a Tesla Cybertruck – fitted with a heavy machine gun and being used by Russian forces in the war against Ukraine – was reportedly remotely disabled, forcing it to be towed from the battlefield.

In May 2024, US Commerce Secretary Gina Raimondo reiterated the potential security threat.

"You can imagine the most catastrophic outcome theoretically if you had a couple million cars on the road and the software were disabled," she said at the time.

MORE: Chinese electric cars ‘an existential threat’ – Ford boss

The comments came after US President Joe Biden ordered an investigation into the national security risk posed by connected vehicles.

"China's policies could flood our market with its vehicles, posing risks to our national security," Biden said earlier this year.

"I’m not going to let that happen on my watch."