US expected to ban Chinese software in autonomous cars

Reuters

The US Commerce Department is expected to propose a ban on Chinese software in autonomous and connected vehicles in coming weeks, according to sources briefed on the matter.

The Biden administration plans to issue a proposed rule that would bar Chinese software in vehicles in the United States with Level 3 automation and above, which would have the effect of also banning the testing of Chinese-made vehicles on US roads.

The administration will also propose barring vehicles with Chinese-developed advanced wireless communications abilities modules from US roads.

Under the proposal, automakers and suppliers would need to verify that none of their connected vehicle or advanced autonomous vehicle software was developed in a "foreign entity of concern" like China.

The Commerce Department said last month it planned to issue proposed rules on connected vehicles in August and expected to impose limits on some software made in China and other countries deemed adversaries.

A Commerce Department spokesperson said on Sunday that the department "is concerned about the national security risks associated with connected technologies in connected vehicles."

The department's Bureau of Industry and Security will issue a proposed rule that "will focus on specific systems of concern within the vehicle. Industry will also have a chance to review that proposed rule and submit comments."

A spokesperson for the Chinese Embassy in Washington said electric vehicles are a globalized industry.

"Only the division of labor and cooperation can bring mutual benefits and only fair competition can bring technological progress," the spokesperson said. "China urges the US to earnestly abide by market principles and international trade rules and create a level playing field for companies from all countries. China will firmly defend its lawful rights and interests."

In other news, China Evergrande New Energy Vehicle (0708) said yesterday a local court had ruled that two of its units should enter into bankruptcy and be reorganized, a week after the individual creditors of the units filed for such proceedings.