The U.S. Department of Commerce has announced a proposed rule aimed at bolstering national security by restricting the inflow of certain Car Connection Auto Parts from China and Russia. This preemptive measure targets connected vehicles, encompassing cars, trucks, and buses designed for public roads, and their critical components that enable external communication and autonomous driving.
This proposed rule specifically zeroes in on hardware and software integrated within the Vehicle Connectivity System (VCS) and the Automated Driving System (ADS). These systems are pivotal for enabling internet connectivity and autonomous functionalities in modern vehicles. The concern raised by the Bureau of Industry and Security (BIS) is that malicious actors could exploit vulnerabilities in these systems to access sensitive user data or even manipulate vehicle operations remotely. This risk is deemed particularly acute with technologies originating from China and Russia.
Secretary of Commerce Gina Raimondo underscored the urgency of this action, stating, “Cars today have cameras, microphones, GPS tracking, and other technologies connected to the internet. It doesn’t take much imagination to understand how a foreign adversary with access to this information could pose a serious risk to both our national security and the privacy of U.S. citizens. To address these national security concerns, the Commerce Department is taking targeted, proactive steps to keep PRC and Russian-manufactured technologies off American roads.”
National Economic Advisor Lael Brainard reinforced this sentiment, emphasizing the Biden-Harris Administration’s commitment to ensuring vehicle safety and security against foreign technological risks. National Security Advisor Jake Sullivan further highlighted the proactive nature of this rule in safeguarding American infrastructure and automotive supply chains from national security risks associated with connected vehicles from countries of concern.
Under Secretary of Commerce for Industry and Security Alan F. Estevez stressed the importance of securing America’s technology supply chains, stating this rule is a critical step in preventing the exploitation of connected vehicle technologies by entities linked to China and Russia. Executive Director of OICTS, Elizabeth Cannon, added that without this rule, the U.S. would be vulnerable to foreign adversaries seeking to compromise critical assets like vehicles.
The proposed restrictions target the import and sale of vehicles incorporating specific VCS or ADS hardware or software with ties to China or Russia. The VCS encompasses systems facilitating external vehicle communication, including telematics, Bluetooth, cellular, satellite, and Wi-Fi modules – all crucial car connection auto parts. The ADS includes components enabling autonomous vehicle operation without driver input.
These prohibitions extend to manufacturers with connections to China or Russia, preventing them from selling connected vehicles in the U.S. that utilize the targeted VCS hardware/software or ADS software, regardless of where vehicle assembly occurs.
The rule proposes a phased implementation, with software restrictions for Model Year 2027 and hardware restrictions for Model Year 2030, or January 1, 2029, for units without model years.
This action is rooted in Executive Order 13873, “Securing the Information and Communications Technology and Services Supply Chain,” empowering the Department of Commerce to regulate technologies posing undue risks to U.S. ICTS, critical infrastructure, the digital economy, national security, or the safety of U.S. individuals.
This proposed rule incorporates feedback from an earlier Advance Notice of Proposed Rulemaking (ANPRM) on connected vehicles. The BIS is now soliciting further public comments on this proposed rule to ensure comprehensive input from industry and the public, allowing stakeholders to shape the final provisions.
Additional Information:
The full text of the proposed rule is accessible here. Public comments are invited for 30 days following publication and can be submitted via the Federal eRulemaking Portal (https://www.regulations.gov) using docket number BIS-2024-0005 or RIN 0694-AJ56, or via email to [email protected] with “RIN 0694-AJ56” in the subject line.
