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US proposes banning Chinese software and components in vehicles

The Biden administration fears Beijing could collect data on American drivers or hack into cars

The US Commerce Department on Monday proposed banning Chinese software and hardware for vehicles with a built-in internet connection, in a move that would effectively ban Chinese vehicles from the US market.

The rule follows concerns from the Biden administration about Chinese companies collecting data on American drivers and infrastructure as well as the potential for foreign adversaries to remotely manipulate connected cars on US roads. 

It is the latest step in a wider US effort to crack down on Chinese vehicles, software and components. The US already this year sharply raised tariffs on Chinese imports, including a 100 per cent tariff on Chinese electric vehicles.

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