Proposed ban on connected vehicle tech from China too broad
The U.S. Commerce Department's proposal to ban software and hardware for connected vehicles imported from China or Russia might face enforcement issues down the road.
The U.S. Department of Commerce's proposed ban on software and hardware components for connected vehicles imported from China or Russia, aimed at ensuring critical infrastructure security, could present compliance challenges for automakers.
Gartner analyst Kevin Mixer said the Bureau of Industry and Security's proposed rule could have a "very broad interpretation," and the scope of the rule might make it challenging to assess how to implement and enforce. A Bureau of Industry and Security news release said the proposed rule would "prohibit the sale or import of connected vehicles integrating specific pieces of hardware and software, or those components sold separately," from China or Russia.
Automakers as well as suppliers have consolidated or converged across the globe, so where does the assessment draw the line?
Kevin MixerAnalyst, Gartner
"Automakers as well as suppliers have consolidated or converged across the globe, so where does the assessment draw the line?" Mixer said. "Is regional ownership at the point of manufacturing or development or the overall corporate ownership?"
Connected vehicle platforms are built on multiple technologies, including chip sets, cloud and networks from different providers, Mixer said. He added that the proposed ban merits more definition to "aid in understanding the impact of the ruling."
U.S. wants to secure connected vehicle supply chain
The proposed rule targets hardware and software within the vehicle connectivity system and software used in the automated driving system. The agency defines those systems as "critical," noting in the release that specific hardware and software components enable external connectivity and autonomous driving capabilities in connected vehicles.
The agency shared concerns that malicious access to those systems "could allow adversaries to access and collect our most sensitive data and remotely manipulate cars on American roads." The Bureau of Industry and Security discovered certain technologies from China and Russia present risks to U.S. critical infrastructure and connected vehicles.
"Cars today have cameras, microphones, GPS tracking, and other technologies connected to the internet," U.S. Secretary of Commerce Gina Raimondo said in the release. "It doesn't take much imagination to understand how a foreign adversary with access to this information could pose a serious risk to both our national security and the privacy of U.S. citizens."
Daniel Castro, vice president of the Information Technology and Innovation Foundation, said as vehicles incorporate additional digital components, more of the software and hardware used in connected vehicles in the U.S. might come from China. He described the proposed rule as a "targeted and appropriate" response to the threat foreign adversaries could pose by introducing untrustworthy components in critical safety and communications systems in connected vehicles.
"In particular, it would not prevent the use of low-cost Chinese components, such as cameras, sensors or infotainment systems, which is reasonable since these do not pose safety or national security risks," he said.
Castro said moving forward, he hopes to see the Commerce Department not only evaluate the risk of individual components within connected vehicles, but also "consider the aggregate risk from multiple untrusted components."
The proposed rule would apply to all on-road vehicles such as cars and trucks but excludes vehicles not used on public roads, such as tractors and other agricultural vehicles.
This isn't the first move to limit Chinese technology in the U.S. and U.S. exports to China by President Joe Biden's administration. Biden first implemented export controls on semiconductors and advanced AI technologies in 2022. He also signed an executive order in 2023 limiting U.S. companies' investments in certain Chinese technologies.
Makenzie Holland is a senior news writer covering big tech and federal regulation. Prior to joining TechTarget Editorial, she was a general assignment reporter for the Wilmington StarNews and a crime and education reporter at the Wabash Plain Dealer.
