The U.S. Commerce Department is expected to propose bans on Chinese software in autonomous and connected vehicles because of security risks later this month, according to multiple media reports. 

A ban, under the Biden administration, would bar Chinese software in any car with Level 3 automation or higher, Reuters reported. This would include the testing of autonomous vehicles produced by Chinese companies on U.S. roads, it says. 

It would also bar vehicles with Chinese-developed advanced wireless communication abilities, Reuters says. 

“Under the proposal, automakers and suppliers would need to verify that none of their connected vehicle or advanced autonomous vehicle software was developed in a ‘foreign entity of concern’ like China,” Reuters reported. 

The White House and Department of State hosted an annual meeting last week to discuss the national security risks associated with connected vehicles. 

“Officials from the United States, Australia, Canada, European Union, Germany, India, Japan, Republic of Korea, Spain, the United Kingdom, and other partner nations exchanged views on the data and cybersecurity risks associated with connected vehicles and certain components,” a White House press release says. “They also affirmed that connected vehicles are emerging as a key node in critical infrastructure as they constantly connect with other vehicles, personal devices, telecommunications networks, the electric grid, and other infrastructure. The United States and like-minded nations will explore options for advancing affirmative cybersecurity standards and coordinating other possible policy measures to mitigate risks.”

Reuters said U.S. lawmakers raised concerns about Chinese companies collecting and handling data while testing autonomous vehicles in November. 

“In letters, the group said that in the 12 months ended November 2022 Chinese autonomous vehicle (AV) companies test drove more than 450,000 miles (724,205 km) in California,” the article says. 

Reuters also reported last week that the U.S. Trade Representative Office has delayed a U.S. tariff increase on electric vehicles by at least two weeks. The tariffs were set to start Aug. 1 but the office is still reviewing 1,100 comments received. A final determination is expected to take place sometime this month with the tariffs starting approximately two weeks after. 

President Joe Biden announced 100% tariffs on Chinese EVs in May. The European Union followed with an imposed tariff of up to 38% last month. 

Canada is also considering imposing tariffs on Chinese-made electric vehicles.

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