Biden's Final Hammer: Curbing Chinese Cars on U.S. Roads

The Biden administration is set to finalize rules to prohibit key Chinese vehicle software and hardware in the U.S., citing national security concerns. The restrictions, impacting the 2027 and 2029 model years, aim to limit Chinese vehicle presence in the U.S. market as major automakers prepare to adjust.

The Biden administration is advancing its strategy to limit Chinese influence in the automotive sector. According to Commerce Secretary Gina Raimondo, regulations blocking key Chinese software and hardware in vehicles on American roads are expected to be finalized next week.

This move, initially proposed in September, reflects national security concerns and would effectively bar Chinese cars and trucks from entering the U.S. market. The rules will require major automakers to purge such technology from vehicles sold in the U.S. starting in 2027 and 2029 for software and hardware, respectively.

Despite requests for deadline extensions from the automotive industry, as well as tariff hikes on Chinese imports, the Biden administration remains firm in its approach. Meanwhile, President-elect Donald Trump appears open to collaboration if Chinese automakers establish production bases in the U.S.

(With inputs from agencies.)