US to ban smart car tech from China and Russia

The US Department of Commerce has proposed a ban on smart vehicles that use Chinese or Russian technology that may put national security at risk, Secretary of Commerce Gina Raimondo told reporters on Sunday.

She said the decision is based on the findings of a federal government investigation that the embedded software and hardware from China and Russia used in US vehicles risked the possibility of hacking or even remote sabotage and stealing of drivers’ personal data.

Speaking to reporters during a press conference on Sunday the commerce secretary raised the spectre of foreign adversaries taking control of such vehicles operating in the US on and off the road.

However, she said the ban will be on fresh imports and will not affect vehicles already plying on US roads.

The software ban would apply to vehicle models starting 2027 and the hardware ban on models starting 2030, she added.

The proposed ban on Chinese and Russian technology is only a part of a broader trade war between the two major trading nations.

United States depends heavily on China for import of cheap technology, while China has emerged as the key in the supply chain of computing technology, including semiconductors and AI technology.

Chinese manufacturers are setting up manufacturing bases for connected cars in Europe, posing a challenge to costly US technology.

On the other hand, Chinese authorities accuse US manufacturer Tesla of using its vehicles to gather data from Chinese companies.

Both the US and Chinese authorities have their own concerns about connected cars that use network connections or satellite communications or other software such as Bluetooth, WiFi and cellular technology that allow a vehicle to communicate with the world outside.

Simultaneously, the White House has announced a $1 billion financing for small and medium sized auto component suppliers to train employees to be deployed in the supply chain.

US has also taken major initiatives in boosting its semiconductor ecosystem through state funding and easing regulatory hurdles.