The US Commerce Department is set to release proposed rules in August that will restrict the use of certain software components from China and other countries deemed adversaries in connected vehicles. The rules are expected to target key software systems that manage data and vehicle operation, aiming to ensure these components originate from allied nations. This move comes after the Biden administration launched an investigation into potential national security risks posed by Chinese vehicle imports in February.
The administration’s concern stems from the increasing integration of software and data sharing in modern vehicles. The government fears that Chinese-made software could potentially be used to compromise vehicle security, access sensitive user data, or even disable vehicles remotely. This concern has been echoed by Secretary of Commerce Gina Raimondo, who highlighted the potential for “catastrophic outcomes” if millions of vehicles on the road were compromised.
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China has previously denounced the US efforts as protectionist and unfair, arguing that its vehicles are popular globally due to competitive pricing and technological innovation. The impact of the proposed rules on the US automotive industry remains unclear, but it is likely to lead to higher vehicle prices and potentially reduce consumer choice.