The United States is about to ban Chinese software in its cars

Not content with imposing 100% tariffs on Chinese-made electric cars, batteries and solar panels, the Biden administration is set to ban manufacturers from using Chinese software and hardware in vehicles subsequently sold in the US. The news has been in the air for some time and could become reality this week.

According to Reuters, the decision should be made official in a few days' time, and the bans would also extend to other countries, including Russia. Once the news has been published, the American public will have 30 days to give their opinion on the proposal before it becomes final.

Why is "national security" at risk?

In February, the Biden administration launched an investigation into Chinese technology used on cars, explaining that it was concerned that Chinese companies were collecting data on American drivers.

"China's policies could flood our market with its vehicles, putting our national security at risk," President Biden said, before adding:"One can imagine the most catastrophic result, in theory, if there were a few million cars on the road and the software was disabled. I will not allow that to happen under my presidency."

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In May, Commerce Secretary Gina Raimondo expressed serious concerns about the use of Chinese technology in US cars. In August, the presidential administration indicated that it was prepared to pass new legislation to ban the use of Chinese software in the operation of Level 3 autonomous cars and vehicle-to-vehicle communication modules.

To which cars would the ban apply?

The ban on the use of Chinese software and hardware in vehicles sold in the US, even if it were passed immediately and became law, could not be applied immediately. Manufacturers would clearly need time, as a trade group representing companies such as General Motors, Toyota, Volkswagen and Hyundai has already pointed out to the government.

For the time being, the plan is to introduce an obligation not to use Chinese software on vehicles produced from 2027 and not to use Chinese-made equipment from 2030. During this period, manufacturers will have to reorganise and find new suppliers.

At the same time, China (as well as other countries that may be in the crosshairs of this new law) could take countermeasures.

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