Breaking News: US Moves to Finalize Ban on Connected Vehicle Technology from China and Russia

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On Tuesday, the Department of Commerce finalized a rule prohibiting the sale or import of connected vehicle hardware and software from China and Russia, according to Automotive Dive.

This decision comes after a year-long investigation into the security risks associated with the external connectivity of technologies such as Bluetooth, cellular, or satellite systems with autonomous driving platforms, Automotive Dive said.

Notably, the rule does not apply to trucks and buses, which regulators plan to address in a separate initiative, according to the Federal Register.

Commerce Secretary Gina Raimondo emphasized the importance of this rule, stating that it represents a crucial move to enhance U.S. national security and safeguard the privacy of American citizens.

The measure aims to prevent foreign adversaries from exploiting these technologies to gain access to sensitive or personal information, according to the Bureau of Industry and Security.

The software-related bans take effect for 2027 model-year vehicles, while hardware bans take effect for 2030 model-year vehicles, or on January 1, 2029, for vehicles without a designated model year, the Bureau of Industry and Security said.

Regulators determined that hardware and software used in vehicle connectivity and software integrated into automated driving systems are vulnerable to external signals, creating a “present an undue and unacceptable risk to national security when designed, developed, manufactured, or supplied by persons” from either China or Russia, according to the Bureau of Industry and Security.

“Malicious access to these critical supply chains could allow our foreign adversaries to extract sensitive data, including personal information about vehicle drivers or owners, and remotely manipulate vehicles,” the Department of Commerce’s Bureau of Industry and Security said in the release.

The text of the final rule is available on the Federal Registar’s website and will take effect 60 days after publication on March 17.

The federal regulators removed the provision that would have included trucks and buses, noting that the complexities of the commercial vehicle supply chain moved regulators to address that segment separately, The White House said.

Priority was placed on passenger vehicles due to China’s rapidly emerging presence in the global automotive industry. The rule also prohibits manufacturers with a “sufficient” connection to China or Russia from selling new connected vehicles in the U.S. that use components from those countries, even if the vehicle is assembled domestically, The Automotive Dive said.

The rule requires certain importers and manufacturers to submit annual Declarations of Conformity to certify their compliance with the prohibitions, according to the press release.

The final rule allows the Commerce Department to issue general authorizations for certain types of transactions deemed lower risk, according to The Automotive Dive.

Elizabeth Cannon, executive director of the Office of Information and Communications Technology and Services, said in a statement her office has worked closely with industry and international partners to learn about the connected vehicle supply chain, The Bureau of Industry and Security said.

“This final rule reflects significant stakeholder feedback and protects our national security while reducing unintended impacts,” Cannon said. “We look forward to working with all relevant parties to facilitate compliance as the rule comes into effect.”