US bans connected cars from China and Russia, starting Model Year 2027

Americans soon won’t be able to buy Chinese and Russian computers on wheels, also commonly referred to as connected cars. The US Department of Commerce’s Bureau of Industry (BIS) announced that a final rule comes into effect on March 17th, 2025.

The US administration under Joe Biden has issued a harsh rule that bars Chinese and Russian-made connected vehicles from the American market. This also means that Chinese companies won’t be able to test self-driving vehicles on US roads.

A final rule “prohibits certain transactions involving the sale or import of connected vehicles integrating specific pieces of hardware and software, or those components sold separately, with a sufficient nexus to the People’s Republic of China (PRC) or Russia.”

The rule addresses software and hardware integrated into the Vehicle Connectivity System (VCS) and also the Automated Driving System (ADS).

BIS explains that VCS systems include those that allow cars to communicate externally, including telematics control units, Bluetooth, cellular, satellite, and WiFi modules. Meanwhile, ADS includes the components that collectively allow a highly autonomous vehicle to operate without a driver.

The 213-page regulation requires that software and hardware ‘were not designed, developed, manufactured, or supplied by persons owned by, controlled by, or subject to the jurisdiction or direction of the PRC or Russia.’

The rule applies only to passenger vehicles that weigh under 10,001 pounds (4,536 kg) due to “the complexity of the commercial vehicle supply chain.” However, commercial vehicles, including trucks and buses, will be addressed in a separate rulemaking in the near future.

The BIS explains that “Malicious access to these critical supply chains could allow our foreign adversaries to extract sensitive data, including personal information about vehicle drivers or owners, and remotely manipulate vehicles.”

“Cars today aren’t just steel on wheels – they're computers. They have cameras, microphones, GPS tracking, and other technologies that are connected to the internet. Through this rule, the Commerce Department is taking a necessary step to safeguard US national security and protect Americans’ privacy by keeping foreign adversaries from manipulating these technologies to access sensitive or personal information,” said US Secretary of Commerce Gina Raimondo.

National Security Advisor Jake Sullivan added that software and hardware from China and other countries pose grave national security risks.

“Today’s rule will prohibit Chinese and Russian software and hardware from being used in connected vehicles on American roads, protecting consumers and ensuring a more secure American auto industry,” said National Economic Advisor Lael Brainard.

While the rule itself comes into effect on March 17th, 2025, the prohibitions will take effect later. Software-related prohibitions will take effect for Model Year 2027. Hardware-related prohibitions will apply for Model Year 2030.