US Eyes Ban on Chinese Software in Self-Driving Vehicles

The United States Commerce Department is considering banning Chinese software in autonomous and connected vehicles.

Sources briefed on the matter told Reuters that a proposal on a ban could be issued within several weeks by the Biden administration.

It’s understood that the intent would be to forbid the use of Chinese software on vehicles rated at Level 3 automation and above by the Society of Automotive Engineers.

Level 3 is considered ‘conditional automation’, whereby the vehicle is in control in certain circumstances, but a human driver must always be ready to intervene. This is currently the most advanced level of automation currently available in the US on passenger cars that can be bought.

The self-driving taxis that have become a familiar sight in a handful of U.S. cities are rated beyond that, at Level 4.

If enacted, a ban would effectively prevent U.S. testing of autonomous vehicles (AVs) developed in China. In California alone, this could affect the likes of Apollo, Auto X and WeRide, who have permits for driverless testing.

Indeed, when filing an IPO with the Securities and Exchange Commission in July, WeRide acknowledged that it could face “various legal and operational risks and uncertainties” due to its links with China. 

It’s understood the administration’s proposal will sit alongside another to prohibit connected vehicles with “Chinese-developed advanced wireless communications abilities modules” from testing on U.S. roads.

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According to Reuters, suppliers and developers would have to prove that none of their relevant tech or software was developed in a “foreign entity” of concern.

In June, Rep. Elissa Slotkin (D-MI) proposed specific legislation in the form of the Connected Vehicle National Security Review Act, which aims to establish a formal national security review for connected vehicles built by companies from China or other countries of concern and give the Commerce Department authority to ban their import or sale if necessary.

The Commerce Department is understood to be concerned at the potential security risks posed by connected tech in vehicles.

This sentiment was reinforced by commerce under secretary for industry and security Alan Estevez, who told a forum in Colorado in May: “A car is a very scary thing. A modern car has a lot of software in it. It's taking lots of pictures. It has a drive system. It’s connected to your phone. It knows who you call. It knows where you go. It knows a lot about you.”

Of course, the proposal also comes amid a landscape of heightened trade tensions between the U.S. and China, with President Biden hiking tariffs on Chinese electric vehicles from 25% to 100% earlier this year.

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