US proposed ban on Chinese connected vehicles ‘may backfire’
2025-01-10 10:58:06 source:Global Times
Janurary 10, 2025
The Biden administration plans to finalize rules next week aimed at cracking down on Chinese vehicle software and hardware, US Commerce Secretary Gina Raimondo told Reuters. However, for Chinese car makers and companies in the supply chain, the impact will be minimal as the sales of Chinese cars in the US are low. But experts said that it will greatly impact international car makers in the US market, and the US automotive industry will likely bear a high cost for the attempt to replace the Chinese supply chain.
In September, the US Department of Commerce's Bureau of Industry and Security (BIS) announced a proposed rule that would prohibit the sale or import of connected vehicles integrating specific pieces of hardware and software, or those components sold separately, with a sufficient nexus to China or Russia, according to a document issued by the BIS.
The proposed rule focuses on hardware and software integrated into the Vehicle Connectivity System (VCS) and software integrated into the Automated Driving System (ADS). These are the critical systems that, through specific hardware and software, allow for external connectivity and autonomous driving capabilities in connected vehicles, according to BIS.
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