The US Commerce Department has proposed a new set of rules aimed at banning Chinese- and Russian-made hardware and software in connected vehicles, citing significant national security concerns. These vehicles, which increasingly rely on external communication technologies like Wi-Fi, Bluetooth, and cellular systems, are seen as vulnerable to foreign interference that could result in hacking or sabotage.

“This is not about trade or economic advantage. This is a strictly national security action,” US Commerce Secretary Gina Raimondo said, emphasizing the urgency of addressing the cybersecurity risks posed by these connected systems.

Raimondo and other officials, including National Security Adviser Jake Sullivan, highlighted the threats these vehicles pose as they are integrated into US infrastructure, including charging stations and power grids. Modern vehicles equipped with cameras, microphones, and GPS tracking, among other internet-connected features, provide potential access points for adversaries to exploit.

The proposed rules would effectively block most Chinese-made vehicles from entering the US market, as relatively few are currently imported. The regulations target software first, with a ban set to take effect for model year 2027 vehicles. A hardware ban will follow, starting with vehicles produced in 2030.

Vehicles without a designated model year will be covered by the ban as of January 1, 2029. The US auto industry, which mostly avoids Chinese or Russian software in its vehicles, faces a more challenging task in pivoting away from Chinese-made hardware.

The broader initiative, launched in part by President Joe Biden’s investigation into the cybersecurity risks posed by Chinese vehicle software, also ties into efforts to safeguard the US auto industry against unfair trade practices. Top White House economic adviser Lael Brainard noted in a recent speech that China has been flooding global markets with auto exports, a strategy that echoes the “China shock” of the early 2000s, which cost the Detroit area over 55,000 manufacturing jobs.

Brainard’s comments also highlighted the administration’s resolve to prevent a repeat of this economic disruption. The Biden administration’s approach, she said, includes putting safeguards in place before underpriced Chinese electric vehicles undercut the US auto sector.

The Commerce Department’s proposed restrictions aim to bolster both economic competitiveness and national defense as the auto industry faces growing technological risks.