The Biden administration has proposed a strong measure that could radically change the landscape of the US automotive market: banning the sale of all cars that use Chinese software or hardware connected to the Internet.
Argued under the umbrella of national security, this proposal follows the same path that led to the ban on Huawei equipment y to the attempt to block TikTokseeking to protect the country’s critical infrastructure from potential cyber vulnerabilities arising from Chinese technology. But before drafting the final rulewill open a period of 30 days to present possible allegations.
Beyond tariffs on Chinese cars in the US
This proposal represents a significant escalation of the restrictions that the US is imposing on Chinese vehicles, software and components. Last week, the Biden administration also imposed sharp tariff increases on Chinese imports, including a 100% tariff on electric vehiclesas well as further increases on electric vehicle batteries and key minerals.
The main goal of the new proposal, which will likely become law before President Biden leaves office on Jan. 20 regardless of who is elected president, is to prevent Chinese-origin software in cars from being used as a backdoor for espionage or even sabotage, a growing concern in Washington.
In this regard, Biden’s national security advisor, Jake Sullivan, assures that “Many of these technologies They collect large volumes of information about drivers”. According to his vision, as vehicles become more dependent on technology and connectivity, “they have become potential targets for cyber attacks that could compromise sensitive user data or, in a more extreme scenario, paralyze critical infrastructure in times of crisis.”
The proposed rule comes after Biden ordered the Commerce Department in February to open an investigation into the threat posed by technology incorporated into Chinese vehicles. And if it comes to fruition, it states that, “starting from the 2027 model year, Chinese software will be banned in connected vehicles, while Chinese hardware will be banned will be banned from 2030 onwards”.
This measure not only affects vehicles directly imported from China, but also those that, although produced by Western manufacturerscontaining software or hardware of Chinese origin.
Tensions between the US and China have escalated in various sectors, as after imposing 100% tariffs on Chinese electric vehicles, the Biden administration is now seeking to block any possibility of these cars, or their technology, gaining a foothold in the US market.
But Tariffs are not enough: Although the number of Chinese vehicles on American roads is not significant at the moment, this proposal sets a precedent that could spread to other sectors.
A strategy known to the US: the precedent of Huawei and TikTok
The Biden administration is pursuing a strategy it has used before in other tech sectors. Both the Huawei telecom ban and the attempt to force TikTok to cut ties with its Chinese owners are clear examples of how the US is using “national security-based” regulations to curb Chinese influence in its domestic market.
In both cases, it was alleged that the technology could be used to collect sensitive information and threaten the country’s infrastructure, a narrative now being applied to the automotive industry. The case of Huaweione of China’s largest tech giants, is particularly illustrative: in 2019, the US banned the sale of its telecommunications equipment citing espionage risks.
Although the measure generated diplomatic and commercial tensions, it managed to slow the company’s expansion in the US market. Now, The same logic applies to the automotive sector.: This is to prevent Chinese technology from becoming “a threat to national security in a time of crisis,” such as a possible military confrontation.
When trade war is fought over software: potential geopolitical consequences
This proposal, if implemented, would have profound implications for both Chinese manufacturers and the American auto industry. Brands like BYDwhich had shown interest in penetrating the North American market, will face an almost insurmountable obstacle. Even those companies that seek alternatives, such as manufacturing vehicles in Mexico to take advantage of the T-MEC trade agreement, will see their options limited.
For American manufacturers, the challenge lies in adjusting their supply chains, many of which rely on Chinese components, especially in key areas such as batteries for electric vehicles and advanced autonomous driving systems.
John Bozzella, president of the US Alliance for Automotive Innovation, warned that “this rule will force car manufacturers to find alternative suppliers, something that cannot be achieved overnight.” The logistical and economic challenge is considerable and could slow the development and adoption of new technologies in the sector.
The move also symbolises a further step in the “digital iron curtain” that is descending between the world’s two largest economies. This growing technological and economic rivalry not only affects Chinese companies, but also which could also have repercussions for American consumerswhich could see limited access to advanced technologies and more affordable vehicles.
The ban on Chinese software in electric cars reflects an escalation in the trade and technology war between the US and China. As the Biden administration seeks to protect the country’s critical infrastructure, the American automotive industry, like the European one, faces an uncertain future in which it must adapt quickly or risk falling behind in the global technological race.
Source: www.motorpasion.com
