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U.S. Aims to Limit China and Russia’s Role in Connected Vehicle Supply Chains

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The Department of Commerce has introduced a proposed rule that would prohibit U.S.-used vehicles from incorporating components sourced from suppliers linked to China or Russia.

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On Monday, U.S. regulators announced a plan to ban certain connected vehicles with hardware or software tied to these countries, tightening oversight of automotive supply chains. The proposed ban focuses on technologies that could, if compromised, allow foreign actors to access sensitive data or remotely control vehicles, according to a press release by the Department of Commerce’s Bureau of Industry and Security. The rule would apply to on-road vehicles like cars, trucks, and buses, while excluding non-public road vehicles such as train stock or agricultural machinery.

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This initiative follows the Biden administration’s February decision to assess the national security risks posed by connected vehicle supply chains. At that time, the agency sought feedback from industry stakeholders on how to best regulate these vehicles and identify critical technologies for oversight.

These categories cover a broad range of technologies, including fleet telematics and autonomous vehicle software. However, it excludes lower-risk systems such as lidar or keyless entry fobs that are less likely to be exploited for data extraction or remote control.

The resulting proposal targets two key areas: hardware and software associated with vehicle connectivity systems, and software tied to automated driving systems.

The rule also clarifies what constitutes significant links to China or Russia, defining it as components “designed, developed, manufactured, or supplied by entities controlled by or operating under the jurisdiction of China or Russia.”

Automakers will have a transition period of several years to adjust their supply chains to comply with the new regulations, according to the press release.

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