US proposes ban on Chinese and Russian automotive software over security concerns

The US Commerce Department has proposed a ban on Chinese and Russian automotive software and hardware, citing national security concerns. If finalized, this rule would significantly limit the presence of Chinese electric vehicles in the US market. The proposed ban follows recent tariff increases on Chinese EV imports and aims to prevent potential security risks from connected vehicle technology. The rule would apply to any vehicle capable of processing radio frequency communications, starting with model year 2027. The ban is seen as a preemptive measure rather than a response to current threats, as Chinese and Russian firms have minimal presence in the US auto market. The rule is expected to be finalized before early 2025, following a public comment period.