All cars containing Chinese parts or software will be banned from sale.

Under the pretext of protecting national security, the same reason that has already been used in many other sectors such as artificial intelligence, semiconductors or chips, the Joe Biden administration has requested through the Department of Commerce to ban the sale of all vehicles that use Chinese software and hardware connected to the Internet.

That is, Joe Biden will try Ban on the sale of any Chinese vehicles Connected to the Internet or any Chinese car program. A 30-day period is now open for potential claims to be submitted before the final rule is drafted.

The regulation that determines in New York TimesIt will come into effect in 2027 for software and in January 2029 or 2030 for hardware. In addition, there will also be an attempt to boycott Russian companies by applying this same rule.

He explains that the procedure comes later. ReutersThis comes after a group of lawmakers warned that Chinese manufacturers would collect confidential data while testing their self-driving vehicle technology in the United States.

The ban, if it goes ahead under current terms, would also affect all software and hardware produced in China even if the manufacturer is Western. In the same article of Reuters They stress that the manufacturers themselves would have asked the administration for some time to adapt to the new regulations.

“With potentially millions of vehicles on the road, each 10 to 15 years old, the risk of them being disabled and sabotaged increases dramatically,” said US National Security Adviser Jake Sullivan, who said a foreign power could remotely take control of all the vehicles, causing mass accidents or disabling the vehicles, according to the report. Financial Times.

from little to nothing

Months ago, the US already imposed a 100% tariff on vehicles made in China. This would leave Chinese manufacturers with little room to maneuver to bring their cars from there. Some time later, the EU also announced its own trade barriers.

Although Chinese cars in the United States are practically an exception, the possibility of what will happen to giants like BYD has remained. The Chinese company has been rumored to be planning to invest in Mexico to manufacture its vehicles and use the trade agreement between the two countries as a back door to enter the United States.

If the new rule goes ahead, the door to the US will be closed because in just two years the sale of any car with Chinese software inside the car will be banned.

But the real problem the US will face is banning the use of any kind of Chinese hardware in its vehicles. Chinese sensors reach so many places in the electric car supply chain (batteries, cells, semiconductors…) that some voices are already warning that it will be a major challenge to comply with this standard, as it was initially proposed.

In this case, the door is open for manufacturers to prove (through auditing) that the Chinese company supplying these devices is not engaged in illegal data collection practices but in media such as Financial Times They explained that this would be a very exceptional situation.

Photos | BYD

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