Outgoing United States (U.S.) President, Joe Biden, on Tuesday, announced a ban on Chinese and Russian technology in vehicles, citing national security concerns.
The new regulations will prevent the sale and import of connected vehicle hardware and software systems, as well as completed connected vehicles, from China and Russia.
This is according to a White House statement released on Tuesday.
The White House stated that restrictions on software would take effect starting from the 2027 model year, while restrictions on hardware will apply from the 2030 model year.
The White House said that these measures are essential to “safeguard America from national security risks associated with the exploitation of U.S. connected vehicle supply chains’’ by China and Russia.
“The Biden-Harris Administration is committed to ensuring that our automotive supply chains are resilient and secure from foreign adversary cyber threats,’’ the statement said.
U.S.-built vehicles will also be impacted, placing companies like Polestar, which manufactures in South Carolina but is controlled by China’s Geely Corporation, in a difficult position.
Meanwhile, Waymo, the self-driving car company owned by Google’s parent firm, Alphabet, is preparing to use modified Zeekr cars, a brand from China, for its next-generation vehicles.
Waymo, however, planned to replace the original electronics with its own systems.
The Biden administration had previously shielded the U.S. car market with 100 per cent tariffs on electric cars from China.
Donald Trump, who is set to succeed Biden on January 20, has long promised a tough stance against Beijing.
Elon Musk, a close adviser to Trump and boss of U.S. electric car manufacturer, Tesla, has criticised the tariffs, claiming they distort the market.
Tesla has a large factory in Shanghai and relies on the Chinese market.
