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US Plans to Ban Chinese Software in Autonomous Vehicles

The US Commerce Department is expected to propose a ban on Chinese software in autonomous and connected vehicles within the next few weeks, according to sources familiar with the matter. This move by the Biden administration aims to prevent the use of Chinese software in vehicles with Level 3 automation and above, effectively barring the testing of autonomous vehicles from Chinese companies on U.S. roads.

The proposed rule will also target vehicles with Chinese-developed advanced wireless communication modules, the sources added. Automakers and suppliers will need to verify that their software for connected and advanced autonomous vehicles was not developed by any “foreign entity of concern,” such as China.

Last month, the Commerce Department indicated its intention to issue proposed rules in August, targeting software made in China and other adversarial countries. A Commerce Department spokesperson stated that the department is concerned about the national security risks associated with connected technologies in vehicles.

The Bureau of Industry and Security within the Commerce Department will issue the proposed rule, which will focus on specific vehicle systems. The industry will have the opportunity to review and comment on the proposed rule.

A spokesperson for the Chinese Embassy in Washington responded, emphasizing that the electric vehicle industry is globalized and advocating for fair competition and adherence to international trade rules. The spokesperson added that China would defend its lawful rights and interests.

On Wednesday, the White House and State Department hosted a meeting with allies and industry leaders to address the national security risks associated with connected vehicles. Officials from various countries, including the United States, Australia, Canada, the European Union, Germany, India, Japan, South Korea, Spain, and the United Kingdom, participated in the meeting to discuss data and cybersecurity risks.

Level 3 automation, also known as conditional driving automation, allows drivers to engage in activities such as watching movies or using smartphones under limited conditions.

In November, U.S. lawmakers expressed concerns about Chinese companies collecting and handling sensitive data while testing autonomous vehicles in the United States. They questioned 10 major Chinese companies, including Baidu, Nio, WeRide, Didi, Xpeng, Inceptio, Pony.ai, AutoX, Deeproute.ai, and Qcraft, noting that these companies test drove more than 450,000 miles in California within a year.

Transportation Secretary Pete Buttigieg highlighted national security concerns regarding Chinese autonomous vehicle companies in the United States. The administration is particularly worried about the potential for connected vehicles to listen in on or record conversations of occupants or take control of the vehicle.

Commerce Secretary Gina Raimondo emphasized the seriousness of the national security risks involved, stating in May, “The national security risks are quite significant. We decided to take action because this is really serious stuff.”

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