(qlmbusinessnews.com Tues. 24th Sept, 2024) London, UK —
“Automotive Industry Shakeup: US Plans Ban on Foreign Tech in Vehicles”
The United States is set to implement a ban on certain hardware and software manufactured in China and Russia for use in cars, lorries, and buses within the country, citing security concerns.
Government officials expressed worries that the technology in question, utilised for autonomous driving and connecting vehicles to other networks, could potentially allow adversaries to “remotely manipulate cars on American roads”.
At present, there is minimal usage of Chinese or Russian-made software in American vehicles. However, Commerce Secretary Gina Raimondo stated that the plans were “targeted, proactive” measures to safeguard the US.
“Modern vehicles are equipped with cameras, microphones, GPS tracking, and other technologies connected to the internet,” she explained in a statement. “It doesn't require 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 US citizens.”
Chinese officials responded by accusing the US of broadening “the concept of national security” to unfairly target Chinese firms. Lin Jian, spokesman for China's Foreign Ministry, urged the US to “respect market principles and provide an open, fair, transparent, and non-discriminatory business environment for Chinese enterprises.”
The proposal, which will now enter a consultation period, is the latest in a series of White House initiatives aimed at limiting China's presence in the car manufacturing supply chain. The US has also increased tariffs on electric cars, batteries for electric vehicles, and various other items. Additionally, it has banned the import of Chinese-made cargo cranes, citing cyber-security risks.
The US initiated an investigation in February to examine the cyber risks associated with so-called connected cars. The proposed software prohibitions would take effect with the 2027 model year, while hardware rules would become effective three years later, allowing the industry more time to restructure their supply chains.
John Bozzella, president and chief executive of Alliance for Automotive Innovation, representing major car companies, acknowledged that while there is “very little technology – hardware or software in today's connected vehicle supply chain that enters the US from China,” the rule would compel some firms to seek new suppliers.
“You can't just flip a switch and change the world's most complex supply chain overnight,” Bozzella cautioned. He added that the lead time included in the proposed rule would allow some auto manufacturers to make the required transition, but might be too short for others.
The Alliance for Automotive Innovation plans to continue sharing its perspective as the final rules are developed.
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