The Joe Biden administration, ahead of Trump taking charge, has approved a rule banning new smart cars using Chinese or Russian technology from being introduced on U.S. roads. The decision, aimed at protecting national security, targets vehicles equipped with internet-connected devices that could potentially collect sensitive information or allow foreign entities to tamper with them remotely.

Announced by the United State Commerce Department’s Bureau of Industry and Security on Tuesday, January 14, the rule deems technologies originating from China and Russia as posing an “unacceptable risk” to U.S. security. The State Officials have expressed concerns over modern vehicles functioning like computers, capable of storing sensitive data about drivers or owners and risking misuse by foreign adversaries.

Key Provisions of the Ban

The rule specifically prohibits the import or sale of internet-connected passenger vehicles containing hardware or software linked to Chinese or Russian entities. Additionally, it bans manufacturers with ties to these countries from selling U.S.-made cars domestically.

The restrictions apply to passenger vehicles weighing up to 10,000 pounds and will be phased in starting with model year 2027, with full implementation by 2030. The rule does not yet cover commercial vehicles like trucks or buses, but the Commerce Department plans to address those in a separate process.

It was on September 23, 2024 that the ban was proposed. The Commerce Department is now seeking public comments on the proposed rule, with plans to finalize it before the end of the administration. 

This move comes as part of the Biden administration’s broader efforts to address national security risks linked to Chinese and Russian technologies. The administration is also working on measures that could lead to tariffs on Chinese semiconductor chips. With the transition of power imminent, these initiatives aim to solidify key policies before the new administration assumes office.

Beyond national security, It is said, the ban would give drivers of the State added personal security. With cars collecting audio and video data and geolocation, the Russian and Chinese hardware and software cannot be trusted.

As per the latest reports from the source, 1,04,000 Chinese-made cars were sold in 2023  in the United States, i.e,  a 45 percent rise from the year ago.