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The Department of Commerce is preparing revolutionary regulations for the auto industry.
The US Department of Commerce plans to unveil new rules prohibiting the use of Chinese and Russian equipment and software for connected cars, Bloomberg reports, citing sources familiar with the situation.
In recent months, the Department of Commerce has held meetings with industry experts in an attempt to address safety concerns associated with a new generation of so-called smart cars. The proposed measures include bans on the use and testing of Chinese and Russian technologies for automated driving systems and vehicle communication systems.
While the bans are mostly about software, the proposed rules will include some hardware components as well. Many modern cars — both gasoline and electric — are equipped with devices that connect them to the internet or cloud services, making them potential targets for hacking.
The upcoming restrictions are the result of an investigation into the cybersecurity risks associated with Chinese automotive software, which President Biden initiated in March. The main goal of the Biden administration is to prevent China or Russia from hacking into cars or tracking them by intercepting communications with software systems created by their domestic companies.
The rules will also have a protectionist element, as most new cars are connected at least through infotainment systems. As a result, Chinese automakers may be banned from selling their products in the U.S. if their cars use their own connectivity technologies.
In May, the administration imposed a 100 percent tariff on Chinese electric vehicles, indicating that the Chinese government is subsidizing its auto industry and increasing exports of excess capacity at a time when U.S. companies are ramping up production of electric vehicles.
China has become a leader in the production of electric vehicles and components for smart cars, thanks in large part to large-scale government subsidies and support. For example, BYD Co. sold more all-electric cars than Tesla Inc. in the fourth quarter of last year. Moreover, global automakers are increasingly dependent on Chinese suppliers of the technology needed for connected cars.
The new restrictions will be enforced by the Commerce Department to prevent Chinese companies from collecting data on U.S. drivers and sending that information back to China. The rules will also effectively prevent Chinese suppliers from strengthening their position in the U.S., giving the U.S. auto industry time to build its own supply chain for connected cars.
The Department of Commerce's proposal includes different phased rollout periods for the various affected software products and components. The final rule is expected to take effect in January 2025 after a 30-day public comment period on the proposal.
In addition to driver assistance and autonomous driving systems, as well as software that tracks cars using mapping and satellite positioning, the regulations will govern hardware for vehicle communication systems. The new measures may affect V2X (Vehicle-to-Everything) systems, which cars use to communicate with road infrastructure, other equipped vehicles and the cloud.
Source
The US Department of Commerce plans to unveil new rules prohibiting the use of Chinese and Russian equipment and software for connected cars, Bloomberg reports, citing sources familiar with the situation.
In recent months, the Department of Commerce has held meetings with industry experts in an attempt to address safety concerns associated with a new generation of so-called smart cars. The proposed measures include bans on the use and testing of Chinese and Russian technologies for automated driving systems and vehicle communication systems.
While the bans are mostly about software, the proposed rules will include some hardware components as well. Many modern cars — both gasoline and electric — are equipped with devices that connect them to the internet or cloud services, making them potential targets for hacking.
The upcoming restrictions are the result of an investigation into the cybersecurity risks associated with Chinese automotive software, which President Biden initiated in March. The main goal of the Biden administration is to prevent China or Russia from hacking into cars or tracking them by intercepting communications with software systems created by their domestic companies.
The rules will also have a protectionist element, as most new cars are connected at least through infotainment systems. As a result, Chinese automakers may be banned from selling their products in the U.S. if their cars use their own connectivity technologies.
In May, the administration imposed a 100 percent tariff on Chinese electric vehicles, indicating that the Chinese government is subsidizing its auto industry and increasing exports of excess capacity at a time when U.S. companies are ramping up production of electric vehicles.
China has become a leader in the production of electric vehicles and components for smart cars, thanks in large part to large-scale government subsidies and support. For example, BYD Co. sold more all-electric cars than Tesla Inc. in the fourth quarter of last year. Moreover, global automakers are increasingly dependent on Chinese suppliers of the technology needed for connected cars.
The new restrictions will be enforced by the Commerce Department to prevent Chinese companies from collecting data on U.S. drivers and sending that information back to China. The rules will also effectively prevent Chinese suppliers from strengthening their position in the U.S., giving the U.S. auto industry time to build its own supply chain for connected cars.
The Department of Commerce's proposal includes different phased rollout periods for the various affected software products and components. The final rule is expected to take effect in January 2025 after a 30-day public comment period on the proposal.
In addition to driver assistance and autonomous driving systems, as well as software that tracks cars using mapping and satellite positioning, the regulations will govern hardware for vehicle communication systems. The new measures may affect V2X (Vehicle-to-Everything) systems, which cars use to communicate with road infrastructure, other equipped vehicles and the cloud.
Source
