US bans connected cars of Chinese and Russian origin

The U.S. government embargoes automobiles originating from the People’s Republic of China or the Russian Federation. This is due to data collection and dependency on the respective manufacturer. In this way, connected cars are a threat to national security, although this discussion only concerns vehicles from the two countries mentioned. In contrast, some foreign connected cars, including Tesla, have long been banned from driving in sensitive areas of China.

Advertisement

Specifically, a new US Department of Commerce regulation (RIN 0694-AJ56) restricts transactions involving vehicle connectivity systems (VCS) and self-driving system hardware and/or certain software if it is designed, developed, manufactured by or or distributed. Control or jurisdiction of the People’s Republic of China (including Hong Kong and Macao) or the Russian Federation. The ban also applies if such people produce the hardware or software themselves in the United States. Its purpose is to slow down bypass construction; Chinese carmakers are already preparing to build cars for the US market in Mexico in order to benefit from the USMCA free trade area (USA, Mexico, Canada).

However, the ban does not apply immediately and not to all vehicles. The years of lead time are: Trade restrictions apply to software from vehicle model year 2027, and to hardware only from 2030 (2029 if there is no vehicle model year). The current regulation only affects connected vehicles weighing up to 10,000 pounds (a good 4.5 tons) for passenger transportation on public roads; A separate rule must be followed for commercial vehicles or other heavy vehicles.

Exception

The US Commerce Department is preparing a general exception. Specifically under discussion are exceptions for vehicles that are on public roads a maximum of 29 days a year, or that come to the country for repairs, conversions, competitions, tests, research or exhibitions, as well as those with a turnover of less than 1,000. Come for small series also. units per year. In addition, it will be possible to apply for exceptions for specific products or services.

The legal basis for the new rules is the state of emergency declared by then-President Trump in 2019 (Executive Order 13873), which initially banned telecommunications transactions only with companies from “hostile” states, but has since been expanded several times. Have, for example, restricted data sales to China, Russia or Iran. The new regulation was preceded by an extensive survey and a public consultation launched in February last year.

(ds)