The United States will nail down its final rules against Chinese cars and software in connected vehicles next week, outgoing Commerce Secretary Gina Raimondo said.
The Biden Administration proposed rules in September to ban the use of key Chinese software and hardware in connected vehicles on American roads due to national security concerns.
“We wanted to hear from industry. We had to get it right. We digested all of that comment and now we’re going to get this out,” Raimondo said in an interview to Reuters.
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“It’s really important because we don’t want two million Chinese cars on the road and then realise… we have a threat.”
The White House cleared the final rule late on Tuesday, according to a government website.
The proposed rules will effectively bar Chinese cars and trucks from the US market.
Major global automakers would also have to remove key Chinese software and hardware from vehicles sold in the US in the years ahead.
The proposed rules would make software prohibitions effective in the 2027 model year and the hardware ban effective from 2029, but industry groups have called on officials to extend those deadlines.
The Alliance for Automotive Innovation, representing General Motors, Toyota Motor, Volkswagen, Hyundai Motor and other major automakers, in October sought at least one additional year to meet the hardware requirement.
The Consumer Technology Association said both deadlines should be extended by two years, as did Honda Motor, in order “to conduct crucial testing, validations, and updating of necessary contracts.”
Despite the Biden Administration’s push to finalise those rules, however, their implementation will come down to President-elect Donald Trump who takes office in a little over a week.
Trump has maintained a hawkish stance on Chinese exports, and nominated outspoken critics of Beijing to his cabinet, but he has also said he remains open to Chinese automakers building vehicles in the US.
“We’re going to give incentives, and if China and other countries want to come here and sell the cars, they’re going to build plants here, and they’re going to hire our workers,” Trump said while on the campaign trail.
- Reuters, with additional editing by Vishakha Saxena
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