Biden Admin Bans Chinese Connected Cars & Robotaxi Testing in US

New Restrictions on Chinese and Russian Connected Vehicles

The U.S. Department of Commerce has finalized a rule, announced on Tuesday, prohibiting the sale and importation of connected vehicles originating from China and Russia. This decision stems from concerns regarding national security.

Furthermore, the regulation extends to restrict Chinese autonomous vehicle companies, including WeRide and Pony AI, from conducting testing of self-driving cars within the United States.

National Security Justification

According to National Economic Advisor Lael Brainard, China is actively pursuing dominance in the automotive sector. However, connected vehicles equipped with systems linked to potential foreign adversaries present risks.

These risks include the potential misuse of sensitive data belonging to American citizens and the possibility of interference from malicious entities. The ruling is intended to bolster the security of the American automotive industry.

Implementation Timeline

The restrictions on software will be implemented with the 2027 model year vehicles. Prohibitions concerning hardware components are scheduled to take effect in 2029.

Existing Chinese software, developed prior to the rule's enactment, will be exempt from these restrictions, provided that a Chinese firm does not retain access to it.

Exemptions and Ongoing Operations

The final rule incorporates an exemption for vehicles exceeding 10,000 pounds in weight. This allows China’s BYD to continue assembling electric buses at its California facility.

Several Chinese autonomous vehicle companies currently hold permits for testing in California. These include Apollo Autonomous Driving (owned by Baidu) and WeRide, both of which have permits for testing without safety drivers.

Pony AI, a recently publicly traded company, possesses a permit for testing with a safety driver present. The company acknowledged a limited risk to its robotaxi testing operations in the U.S. due to the impending ban.

However, Pony AI indicated that these operations contributed “less than 1% of [its] total revenues in 2023 and the six months ended June 30, 2024.”

California DMV Response

A spokesperson for the California Department of Motor Vehicles (DMV) previously stated the agency would align its enforcement efforts with the Commerce Department’s directives.

TechCrunch has contacted the DMV to ascertain whether existing permits for Chinese connected vehicle technology will be revoked following the announcement of the final ruling.

Key takeaway: This new rule represents a significant step in safeguarding national security interests within the rapidly evolving automotive technology landscape.