The Biden administration is set to finalize regulations next week targeting Chinese software and hardware in vehicles sold in the United States, U.S. Commerce Secretary Gina Raimondo told Reuters. The proposed rules, first introduced in September, aim to address national security concerns by barring Chinese technology from connected vehicles on American roads.
“We wanted to hear from industry. We had to get it right. We digested all of that comment, and now we’re going to get this out,” Raimondo said. “It’s really important because we don’t want two million Chinese cars on the road and then realize… we have a threat.”
The finalized rules, cleared by the White House on Tuesday, will prohibit Chinese software in vehicles starting with the 2027 model year, while hardware bans will take effect in 2029. The regulations are expected to disrupt global automakers, including General Motors, Toyota Motor, and Volkswagen, who would need to remove Chinese components from their U.S.-market vehicles.
Industry groups have expressed concerns over the timeline. The Alliance for Automotive Innovation, representing major automakers, sought at least a one-year delay for hardware requirements, while Honda Motor and the Consumer Technology Association suggested a two-year extension to allow for “crucial testing, validations, and updating of necessary contracts.”
This move comes amid broader efforts by the Biden administration to curb Chinese influence in the U.S. auto market, including imposing 100% tariffs on Chinese electric vehicles and increased duties on EV batteries and critical minerals. Meanwhile, President-elect Donald Trump has proposed limiting Chinese auto imports but signaled openness to Chinese automakers building production facilities in the United States. “If they want to sell cars here, they’re going to build plants here and hire American workers,” Trump said.
Source: Reuters
