US moves to ban high-tech car parts from China and Russia amid spyware and hacking fears

The US government has proposed a ban on Chinese or Russian-made software and hardware for any vehicle that features an internet connection, citing fears over data security and the possibility of remote activation of critical features.

The proposal comes from the US Commerce Department, and follows previous action designed to crack down on the potential for Chinese companies to build market share in the country’s automotive sector - including the 100 per cent tariff levied on Chinese electric cars earlier this year.

US lawmakers are taking what they consider to be precautionary measures, after watching Europe throw open its doors to Chinese vehicle imports, and the flood of vehicles that has ensued. The Financial Times reports US Commerce Secretary Gina Raimondo as saying: “We know the Chinese playbook. They subsidise, so we’re not going to wait until our roads are filled with cars and the risk is extremely significant,”

The new rule should become law before the end of the Biden administration, and come into effect from 2027. According to the FT and other reports, US officials are assuming the measure will effectively prohibit any new Chinese - or Russian - vehicles from entering the country.

While there are relatively few Chinese cars on US roads currently, the same can’t be said for Chinese-made technology, which is why there’s a delay until 2027 in order for car makers to reassess their supply chains. Batteries aren’t included in the ban, however, which only covers components associated with the vehicle’s connectivity systems.

When unveiling its proposals, the US Commerce Department laid out a range of theoretical risks including the possibility of bad actors collecting data on where drivers live or work, or even shutting down roads by causing crashes or traffic jams.

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