US Bans Chinese Software and Hardware
The U.S. Commerce Department in September proposed banning key Chinese software and hardware from connected vehicles on American roads, citing national security concerns. The move would effectively ban Chinese cars and trucks from the U.S. market. It also predicts that major global automakers will be forced to remove significant amounts of Chinese software and hardware from vehicles sold in the U.S. in the coming years.
MINISTER USED THE EXPRESSION "THREAT"
“We wanted to get the industry’s input. We needed to get this process right. We took all of those comments into consideration and now we’re going to announce the results,” said US Commerce Secretary Gina Raimondo, adding, “This is really important because we don’t want to have two million Chinese cars on the road and then find out that that’s a threat.”
The White House’s approval of the final rule was announced on a government website. The proposal, announced in September, aimed to put the software bans into effect as of model year 2027. The hardware bans are set to go into effect in 2029.
IT WILL AFFECT MANY BRANDS
The Alliance for Automotive Innovation, which represents major automakers including General Motors, Toyota Motor, Volkswagen and Hyundai Motor, requested an extension of at least one year in October to meet the hardware requirement. The Consumer Technology Association said brands such as Honda Motor should extend both periods by two years to “conduct significant testing, validation and update of necessary contracts.”
In September, the Biden administration began imposing a 100% tariff on electric vehicles imported from China, imposing steep tariff hikes on electric vehicle batteries and key minerals.
WHAT DID TRUMP SAY?
President-elect Donald Trump, who will take office on January 20, stated that although he wants to block car imports from China, he looks favorably on Chinese automakers producing vehicles in the U.S. Trump had previously said, “We will give incentives; if China and other countries want to come here and sell cars, they will build factories here and hire our workers.”
