The U.S. Commerce Department issued a final rule on Tuesday that will prevent the import of certain Chinese and Russian connected car technologies. The rule specifically targets software and hardware integral to Vehicle Connectivity Systems (VCS), such as telematics control units and cellular, satellite, and Wi-Fi functions. Additionally, Automated Driving System (ADS) software, which self-driving cars rely on, will also be banned if it is linked to China or Russia. The rule applies to passenger vehicles, although the Commerce Department acknowledged that foreign adversaries pose a national security threat to commercial vehicles as well and plans to address this in a future rule.
The rule prohibits the import of connected cars containing VCS and ADS systems from China and Russia, even if they are manufactured domestically. This regulation was introduced to safeguard U.S. national security by addressing the potential risks posed by foreign adversaries gaining access to sensitive information and potentially manipulating vehicle systems. The Commerce Department emphasized that foreign governments, particularly those of China and Russia, could potentially use the compromised systems to track individuals, intercept personal data, and even disrupt U.S. infrastructure through remote control of vehicles.
While the rule will not take effect until January 2026 for software products and January 2029 for hardware, it will prohibit the sale of connected cars with VCS and ADS systems linked to China and Russia starting in 2026. Manufacturers and importers will be required to submit an annual declaration to the Bureau of Industry and Security, confirming their compliance with the rule. This extended timeline provides automakers the necessary time to adjust their supply chains and ensure that the new regulations are met without disrupting the market.
The final rule was developed in consultation with the Alliance for Automotive Innovation, the largest lobbying organization for automakers in the U.S., which expressed support for the regulation. The organization recognized the need to address the security risks associated with foreign adversary-controlled technologies in the automotive sector. Commerce Secretary Gina Raimondo highlighted that the rule was crucial to protect Americans’ privacy and national security by preventing foreign actors from exploiting vulnerabilities in connected vehicle systems. With growing concerns over cyber espionage and disruptions to critical infrastructure, the rule aims to safeguard U.S. transportation systems from potential threats posed by foreign adversaries.
