US finalizes rule effectively banning Chinese vehicles, which could include Polestar

The Biden administration has finalized a new rule that would effectively ban all Chinese vehicles from entering the United States under the auspices of blocking the “sale or importation” of connected vehicle software from “countries of concern” . The rule could have far-reaching effects on large automakers, like Ford and GM, as well as smaller automakers like Polestar — and even companies that don’t make cars, like Waymo.

The rule covers anything that connects a vehicle to the outside world, such as Bluetooth, Wi-Fi, cellular and satellite components. It also addresses concerns that technologies such as cameras, sensors and on-board computers could be exploited by foreign adversaries to collect sensitive data on U.S. citizens and infrastructure. And it would prohibit China from testing its self-driving cars on American soil.

“Today’s cars are equipped with cameras, microphones, GPS tracking and other Internet-connected technologies,” U.S. Commerce Secretary Gina Raimondo said in a statement. “It doesn’t take much imagination to understand how a foreign adversary with access to this information could pose a serious risk to both our national security and the privacy of American citizens. To address these national security concerns, the Department of Commerce is taking targeted, proactive steps to keep (People’s Republic of China) and Russian-made technology off U.S. roads.”

Banned software rules take effect for model year 2027 vehicles, while the ban on hardware from China awaits model year 2030 vehicles. According to ReutersThe rules were updated from the original proposal to exempt vehicles weighing more than 10,000 pounds, which would allow companies like BYD to continue assembling electric buses in California.

The new rule is the latest escalation of ongoing trade restrictions put in place on Chinese-made vehicles, including components such as computers and batteries. This comes at a time when China is producing more cars than ever, gaining status as the world’s top auto exporter. The rule also covers Russian-made vehicles and components.

China’s access to vehicle software presents “a significant threat” to the United States because it would grant an adversary “unfettered access” to critical technology systems and the user data they collect, the White House said.

“As (People’s Republic of China) automakers aggressively seek to increase their presence in the U.S. and global auto markets, through this final rule, President Biden is delivering on his commitment to securing critical U.S. supply chains and to protect our national security,” the administration said. adds.

The auto industry sought to delay adoption of the rule for a year, effectively handing it over to the incoming Trump administration to implement, but was unsuccessful. The Alliance for Automotive Innovation, which represents GM, Ford, Volkswagen, Toyota and others, said in comments submitted last April that it supported the goal of the proposed rules, but warned that the chain d The global automotive supply chain “is one of the largest and most important in the world. the most complex” and that parts could not simply be replaced without disruption.

Other automakers have been more explicit in their criticism. Polestar, an electric vehicle maker owned by Geely, said in October that the rule would “effectively prohibit Polestar from selling its cars in the United States, including cars it makes in South Carolina.”

Indeed, the White House states in its fact sheet that the rule prevents the importation or sale of connected vehicles “by entities that are owned, controlled by, or subject to the jurisdiction or direction of the PRC or Russia – even though these vehicles were manufactured in the United States.

Meanwhile, Waymo, which plans to use vehicles made by Geely’s Zeekr for its next-generation robotaxi, said it is taking precautions to ensure that the vehicles it buys for its fleet arrive without any telematics system installed by the manufacturer. Nonetheless, this rule could significantly disrupt the Alphabet-owned company’s expansion plans if the government decides to ban the importation of the Zeekr vehicle under the new rule.

“Waymo filed comments in support of the rule last fall,” Waymo spokesperson Ethan Teicher said in an email. “We are reviewing the final rule and appreciate the timeliness of the Department’s rulemaking.”

A Polestar spokesperson did not immediately respond to requests for comment.

Updated January 14: Updated to include comment from Waymo.