A worker wipes down a Rising F7 model car in a section selling various brands of Chinese-made electric cars at a shopping mall in Beijing, Tuesday, April 4, 2023. (AP Photo/Andy Wong)
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Andy Wong/AP
The U.S. Commerce Department on Monday proposed a national security ban on certain auto parts made in China and Russia on U.S. roads starting in 2027. The proposed rule comes after President Biden in February ordered an investigation into whether Chinese vehicles pose a national security risk.
If passed, the ban would cover hardware and software that connect vehicles to the outside world — such as Bluetooth and satellite modules — and driverless systems.
“We’ve already seen ample evidence that China has pre-positioned malware on critical infrastructure with the intent of disrupting and sabotaging it,” National Security Adviser Jake Sullivan said on a call with reporters. “And with potentially millions of vehicles on the road, each with a lifespan of 10 to 15 years, the risk of disruption and sabotage increases dramatically.”
Earlier this year, FBI Director Christopher Wray warned Congress that China was targeting U.S. water treatment plants, pipelines and power grids.
Beyond national security, Sullivan said, the ban would enhance the personal safety of American drivers. Since cars collect geolocation, audio and video data, Chinese and Russian software and hardware are untrustworthy, Sullivan said.
U.S. Commerce Secretary Gina Raimondo called the proposed ban — issued by her department’s Bureau of Industry and Security — a “proactive” measure since there are currently “very few Chinese cars” on American roads.
In 2023, 104,000 Chinese-made cars were sold in the United States, a 45% increase from the previous year, according to Business Insider.
“We will secure our cars and we will protect the American people, including our children, from any potential surveillance, remote access and control, and we will protect Americans from bad actors and we will try to give every American peace of mind,” Raimondo said on the call.
Raimondo also cited Europe as a “telling example.” Nearly 500,000 Chinese-made cars are on European roads, according to a report by Jato Dynamics, which studies the industry. And this summer, in a separate report, Jato said Chinese automakers have surpassed their U.S. rivals in overall sales, with 13.4 million vehicles sold compared with 11.9 million in the United States.
Despite the economic impact this proposed rule would have, Raimondo said it was not a driving force.
“This is not about trade or economic benefits,” Raimondo said. “This is strictly a national security measure.”
Yet Lael Brainard, Biden’s national economic adviser, highlighted the economic impact the rule would have on American workers.
“The Biden-Harris administration believes that the future of the auto industry is built in America by American workers, and today’s announcement ensures that Americans can drive the car of their choice safely, without the risks posed by Chinese technology,” Brainard said.
In May, Biden imposed a 100% tariff on Chinese electric vehicles.
“I am committed to ensuring that the future of electric vehicles is made in America by union workers. Period,” Biden said.
The Commerce Department will give the public 30 days to comment on the rule before finalizing it. It then plans to begin banning Chinese and Russian automotive software starting with the 2027 model year. The hardware ban would begin in 2029.
“Our goal is to have this final rule adopted before the end of this administration,” a senior administration official said on the conference call. “So we hope to get there.”
