The US Commerce Department is expected to propose a ban on Chinese software and hardware in connected and autonomous vehicles on American roads due to national security concerns, sources told Reuters.
The Biden administration has expressed worries over Chinese companies collecting data from US drivers and infrastructure, as well as the potential foreign manipulation of internet-connected vehicles and navigation systems.
This move aligns with broader efforts to safeguard US technology and infrastructure from foreign interference.
The proposed regulation would ban the import and sale of vehicles from China with key communications or automated driving system software or hardware, said the two sources, who declined to be identified because the decision had not been publicly disclosed.
The move is a significant escalation in the United States' ongoing restrictions on Chinese vehicles, software, and components. Early this month, the Biden administration locked in steep tariff hikes on Chinese imports, including a 100 percent duty on electric vehicles as well as new hikes on EV batteries and key minerals.
Commerce Secretary Gina Raimondo said in May the risks of Chinese software or hardware in connected US vehicles were significant.
"You can imagine the most catastrophic outcome theoretically if you had a couple of million cars on the road and the software was disabled," she said.