U.S. Finalizes Rule to Ban Chinese Technology in Cars

The United States has taken a significant step to tighten its stance on foreign technology, finalizing a rule on Tuesday that effectively bans Chinese-made software and hardware in cars sold in the American market. The move is part of broader efforts to address national security risks posed by technology from geopolitical rivals such as China and Russia.

Modern vehicles are no longer just steel machines on wheels; they are increasingly sophisticated computers equipped with advanced connectivity features. While this technological evolution brings convenience and innovation, it also introduces potential vulnerabilities.

Commerce Secretary Gina Raimondo explained the rationale behind the new rule: “Cars today aren’t just steel on wheels — they’re computers. This is a targeted approach to ensure we keep PRC and Russian-manufactured technologies off American roads.”

The concern is that connected vehicles equipped with software or hardware linked to adversarial nations could compromise sensitive data or even pose risks of external interference.

The rule’s finalization comes as President Joe Biden nears the end of his term, capping a series of measures aimed at reducing the influence of Chinese technology in critical sectors.

READ ALSO: China Reportedly Explores Sale of TikTok’s US Operations to Elon Musk

The announcement also follows months of regulatory reviews and debates, as well as recent discussions about potential restrictions on drones using components from adversaries like China and Russia.

Lael Brainard, National Economic Advisor, emphasized the stakes: “China is trying to dominate the future of the auto industry.” According to Brainard, the presence of foreign technology in connected cars could lead to the misuse of sensitive data, posing serious risks to both individual privacy and national security.

This rule is likely to have far-reaching effects on automakers and suppliers operating in the U.S. market. Companies will need to ensure that their supply chains and technology stacks comply with the new regulations, which could lead to increased scrutiny of partnerships and sourcing decisions.

For consumers, this may mean a gradual shift toward vehicles with domestically sourced or allied-nation technology. While the immediate impact might not be visible, the policy underscores the growing intersection of national security and technological innovation in everyday products like cars.