U.S. Curbs Chinese Cars as Security Concerns Rise

The outgoing Biden administration is implementing rules to restrict nearly all Chinese cars and trucks from the U.S. due to national security concerns. These regulations extend to connected vehicle software and hardware, with some exceptions made for existing Chinese software. Incoming President Trump may influence the final decision.


Devdiscourse News Desk | Updated: 14-01-2025 15:32 IST | Created: 14-01-2025 15:32 IST
U.S. Curbs Chinese Cars as Security Concerns Rise
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The Biden administration is set to unveil new regulations on Tuesday, aiming to exclude nearly all Chinese vehicles from the U.S. market. This policy forms part of a broader initiative to scrutinize vehicle software and hardware sourced from China.

This decision follows a similar measure being considered by the Commerce Department concerning Chinese-made drones. The department had previously implemented substantial tariff increases on Chinese electric vehicles. Commerce Secretary Gina Raimondo expressed the importance of this action, citing potential national security threats posed by such imports.

Recently proposed rules by the department seek to ban critical Chinese software and hardware from U.S. roads, affecting software by the 2027 model year and hardware by 2029. These measures also impact Russian vehicles and components. However, vehicles weighing over 10,000 pounds, like those assembled by China's BYD in California, are exempt under the finalized rules.

Additionally, new regulations targeting larger commercial vehicles are anticipated. The ruling permits existing Chinese-developed software, provided it isn't updated by a Chinese firm, hence allowing automakers such as General Motors and Ford to continue some imports. The Alliance for Automotive Innovation, representing major automakers, requested more time to comply with hardware mandates but was denied.

The outgoing Biden administration recently heightened tariffs on Chinese electric vehicle imports and included the crucial Chinese battery firm CATL in a list of companies accused of assisting the Chinese military. As President-elect Donald Trump prepares to take office on January 20, he expresses an interest in blocking Chinese car imports but remains open to Chinese automakers establishing manufacturing within the U.S.

(With inputs from agencies.)

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