The import and sale of connected vehicles will be banned from US roads if they contain software or hardware linked to China or Russia.
The Biden administration on Tuesday finalized rules that will effectively ban new Chinese or Russian cars from American roads.
The rules, announced by the Bureau of Industry and Security (BIS), ban the import of hardware and software used in smart cars, self-driving cars, and passenger vehicles that contain such hardware or software if they have “a sufficient nexus” to China or Russia.
New vehicles made in the United States cannot be sold if they contain such components.
The BIS said bans related to software will take effect for Model Year 2027. Hardware-related bans will take effect for Model Year 2030 and on Jan. 1, 2029, for units without a model year.
The BIS said connected vehicle technologies from China and Russia pose “an undue and unacceptable risk to U.S. national security.”
“Cars today aren’t just steel on wheels—they’re computers. They have cameras, microphones, GPS tracking, and other technologies that are connected to the internet. Through this rule, the Commerce Department is taking a necessary step to safeguard U.S. national security and protect Americans’ privacy by keeping foreign adversaries from manipulating these technologies to access sensitive or personal information,” Secretary of Commerce Gina Raimondo said in a statement.
National Security Adviser Jake Sullivan said the measure will protect Americans against national security risks “by safeguarding our critical infrastructure and automotive supply chain.”
In proposed rules published in September 2024, the BIS said adversaries could exploit vulnerabilities in connected vehicles to access information such as a driver’s “location, speed, voice patterns, battery state of charge, or other vehicle diagnostic and operational information” or using malware to gain control of a vehicle.
On Tuesday, the BIS said many of the comments it had received agreed with the bureau’s risk assessment and supported using supply chain regulation to mitigate the risks.
Some commenters wanted the BIS to exclude the commercial vehicle market, saying it’s more difficult for the sector to apply the rules, the BIS said.
In response to comments on the proposed rule, the BIS limited the scope of the final rule to vehicles under 10,001 pounds. The change would let China’s battery maker BYD continue to assemble electric buses in California.
The BIS said it intends to make further rules on connected commercial vehicles, such as trucks and buses, “in the near future.” A final decision will be up to the incoming Trump administration.
Importers and manufacturers of connected vehicles and components will be required to submit an annual Declaration of Conformity to certify that they are complying with the rules.
The BIS said it will issue general authorizations to exempt small businesses that import or make fewer than 1,000 units a year and to allow the import and sale of vehicles that are used on public roads for fewer than 30 days in a year, such as RVs, vehicles or hardware used only for purposes including display, testing, research, repair, or alteration.
Businesses will also be allowed to apply for specific authorizations.
In a shift, the department said the bans would not cover Chinese software developed before the new rules took effect so long as it was not being maintained by a Chinese firm.
That means General Motors and Ford could potentially continue to import some Chinese-made vehicles for U.S. buyers, a senior official told reporters.
The final rule came after FBI Director Christopher Wray warned of the Chinese regime’s cyber program, which he said is “by far and away the world’s largest.”
He told “60 Minutes” on Sunday that Chinese malign actors have been “pre-positioning on American civilian critical infrastructure” in order to “lie in wait on those networks to be in a position to wreak havoc and can inflict real-world harm at a time and place of their choosing.”
On the same day, Sir Richard Dearlove, former chief of MI6, issued a similar warning in the UK, telling The Times of London that “anything manufactured in China” that’s connected to the internet “can ultimately be controlled by Beijing.
In September 2024, the Biden administration finalized steep tariff hikes on Chinese electric vehicle imports, and this month, it put key Chinese battery company CATL on a list of firms accused of aiding the country’s military.
President-elect Donald Trump, who takes office on Jan. 20, wants to prevent Chinese auto imports but is open to Chinese automakers building vehicles in the United States.
Reuters contributed to this report.