US Moves to Ban China Software in Autonomous Cars, Reuters Says

(Bloomberg) -- The US may propose barring Chinese software in autonomous vehicles in coming weeks amid security concerns, according to Reuters.

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The Biden administration plans to propose a rule that would prohibit Chinese software in vehicles in America with Level 3 automation and above, Reuters reported, citing unidentified sources. That would effectively also ban testing on US roads of autonomous vehicles produced by Chinese firms, the report said.

The US has already sought to limit the entry of Chinese-made electric vehicles, levying tariffs of more than 100%, and President Joe Biden’s clean energy bill makes it more difficult for automakers to use batteries manufactured in Asia’s biggest economy. With tensions between Washington and Beijing running high, those concerns are now extending into Chinese autonomous vehicle software.

The government is worried that smart vehicles using Chinese software could collect sensitive data about US citizens and infrastructure, and send the data to China.

The Biden administration is also planning to ban cars with advanced wireless communication systems developed by China, Reuters reported. 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, according to the report.

A Commerce Department spokesperson said the department “is concerned about the national security risks associated with connected technologies in connected vehicles,” according to Reuters.

A spokesperson for China’s Ministry of Foreign Affairs said in response to questions from Bloomberg News that Beijing “opposes the US’s generalization of the concept of national security and discriminatory practices against Chinese-made electric vehicles and connected cars.”

“China urges the US to respect market principles and provide an open, fair, transparent and non-discriminatory business environment for Chinese enterprises,” the spokesperson said. “China will resolutely safeguard its legitimate rights and interests.”

--With assistance from Lucille Liu.

(Updates with response from China’s Ministry of Foreign Affairs.)

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