US expected to propose barring Chinese software in autonomous vehicles

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

The Biden administration plans to issue a propose 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 testing on U.S. roads of autonomous vehicles produced by Chinese companies.

The administration also plans to propose barring vehicles with Chinese-developed advanced wireless communications abilities modules from U.S. roads, the sources added.

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 sources said.

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.

Asked for comment, 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."

On Wednesday, the White House and State Department hosted a meeting with allies and industry leaders to "jointly address the national security risks associated with connected vehicles," the department said. Sources said officials disclosed details of the administration's planned rule.

The meeting included officials from the United States, Australia, Canada, the European Union, Germany, India, Japan, the Republic of Korea, Spain, and the United Kingdom who "exchanged views on the data and cybersecurity risks associated with connected vehicles and certain components."

Also known as conditional driving automation, Level 3 involves technology that allows drivers to engage in activities behind the wheel, such as watching movies or using smartphones, but only under some limited conditions.

The administration is worried about connected vehicles using the driver monitoring system to listen or record occupants or take control of the vehicle itself.

"The national security risks are quite significant," Commerce Secretary Gina Raimondo said earlier this year. "We decided to take action because this is really serious stuff."