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White House Proposes Ban on Chinese Connected Vehicle Software

Kevin Carter / Getty Images

Key TakeawaysThe White House on Monday proposed a ban on the use and testing of connected vehicle software and equipment from China and Russia.The software, which is used in navigation, parking, and autonomous driving, presents national security risks, the administration said.The U.S. previously raised its tariffs on Chinese electric vehicles (EVs) to 100%.
The Biden administration has proposed a ban on the use and testing of connected vehicle software and equipment from China and Russia.The rule includes any systems that connect a vehicle to the outside world, such as through Bluetooth, Wi-Fi, and cellular data. It also notably includes "automated driving systems" (ADS). Software 'Creates Opportunities To Collect and Exploit Sensitive Information'The U.S. Department of Commerce found that software in modern vehicles, which can help drivers with navigation and parking safely, also "creates opportunities to collect and exploit sensitive information," the White House said. Russia and China present "particularly acute threats," including using vehicle software for surveillance and sabotage, the administration added. The notice of proposed rulemaking comes after the department opened an investigation into the matter in February. In May, the U.S. significantly increased its tariffs on Chinese electric vehicles (EVs) to 100% from 25%, amid growing concerns over the global economic fallout from the Asian nation's excess manufacturing capacity. Read the original article on Investopedia.

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