Proposed Rules on Connected Vehicles and Imposed Limits on Chinese Software Expected by U.S. Commerce Department
The U.S. Commerce Department is set to release proposed rules on connected vehicles next month, according to a senior official. These rules are expected to include limitations on software produced in China and other countries considered adversaries. Specifically, the focus will be on certain components and driver-related software that manage data within the vehicle. These components will need to be manufactured in allied countries, ensuring that they meet security standards and mitigate potential risks.
The idea of imposing restrictions on Chinese-connected vehicles had been previously mentioned by Commerce Secretary Gina Raimondo. She had expressed concerns about national security risks posed by Chinese vehicle imports. In fact, the Biden administration launched an investigation in February to assess these risks and explore potential actions. Raimondo had also mentioned the possibility of extreme measures, such as banning Chinese-connected vehicles or implementing strict limitations.
The recent comments from Alan Estevez, the Commerce under secretary for industry and security, provide the most definitive insight into the administration’s plans regarding Chinese vehicles. They have caused alarm among various stakeholders within the automotive industry.
One of the key concerns with connected vehicles is the amount of data they collect and share. Connected cars have integrated network hardware that enables internet access and facilitates data exchange with both internal and external devices. Estevez emphasized the seriousness of this threat, highlighting the fact that cars possess significant information about their owners. Whether it’s an electric or autonomous combustion engine vehicle, modern cars contain a substantial amount of software that captures images, manages driving systems, connects to smartphones, and tracks personal information like call history and location data.
China’s foreign ministry has previously urged the United States to respect market economy laws and fair competition principles. It argues that Chinese cars have gained global popularity due to fierce competition in the market and technological innovation.
Secretary Raimondo also raised concerns about the potential consequences if millions of cars were to experience software malfunctions or cyber attacks. The catastrophic outcomes can be imagined, emphasizing the need for secure and reliable software in connected vehicles.
While there are relatively few Chinese-made light duty vehicle imports in the United States, the Biden administration has proposed significant tariff increases on Chinese electric vehicles and other goods. These tariffs are expected to come into effect by August 1st.
In conclusion, the U.S. Commerce Department is prioritizing the security of connected vehicles and their software components. Proposed rules focusing on Chinese-connected vehicles are expected soon, with an emphasis on ensuring key driver components are made in allied countries. The concerns surrounding connected cars stem from the vast amount of personal data they collect and the potential risks associated with cyberattacks or software vulnerabilities. By addressing these concerns, the United States aims to enhance national security and protect consumers in an increasingly connected world.