There is a very real possibility that vehicles with Russian and Chinese components will soon be banned from US roadways. This week, US Commerce Secretary Gina Raimondo revealed her department’s plan to limit foreign involvement with connected cars. Existing vehicles, including those already being designed, wouldn’t have to make changes, but automakers could have to rethink how they equip cars in a couple of years.

Until recently, connected cars were the domain of established firms in the US, Japan, and South Korea. However, the rise of budget electric vehicles in China has US officials worried. Firms like BYD now offer capable electric vehicles that are exported throughout Asia and even Europe, where China’s market share has increased from 2.9% in 2020 to 7.6% today. This has forced Tesla to rethink its plans to release a less expensive car. It is now believed Tesla’s delayed Model 2 will be repurposed as the company’s even more delayed robotaxi.

Raimondo claims this initiative is not about protectionism. Instead, the Commerce Department claims the proposed restrictions are intended to strengthen national security. Officials worry that allowing certain hardware and software components in US vehicles from hostile nations could lead to sabotage, privacy intrusions, and safety concerns.

“In extreme situations, a foreign adversary could shut down or take control of all their vehicles operating in the United States, all at the same time,” said Raimondo. She explained that a hostile actor with direct control over all those vehicles could destabilize the US by causing crashes or blocking roads. It may sound a bit science-fictional, but it’s technically possible. And at any rate, it provides cover for what may still be a protectionist move.

Secretary Gina Raimondo was the governor or Rhode Island before leading the Commerce Department.
Credit: Public domain

The rules are not specifically focused on electric vehicles, although many affected models will be electric or hybrids. The rules cover so-called “connected vehicles,” which includes any vehicle with network connections for communication, autonomous navigation, roadside assistance, or a raft of other features. That also includes the components that enable such capabilities, including Bluetooth, Wi-Fi, and cellular modems.

This comes as US authorities work overtime to keep critical technologies away from the Chinese and Russian governments. Russia has faced global trade restrictions ever since it invaded Ukraine in 2022, and China has been cut off from the world’s most advanced silicon to stymie its progress in AI. Although, China’s domestic semiconductor industry has accomplished some impressive feats of engineering with substandard equipment.

If finalized, the rules will take effect for software from Russia and China in the 2027 model year. Prohibitions on hardware components would begin in January 2029 for 2030 model year vehicles. The Commerce Department has opened up public comment on the proposed changes, which will be available for 30 days. The agency hopes to issue the new rules later this year before the Biden administration winds down.