Government

US Firms Strengthen Restrictions on Chinese Technology in Vehicles Amid Security Concerns

Published January 14, 2025

The US government has implemented a new rule effectively banning cars with Chinese and Russian-made technology from the American market. This decision arises from growing concerns that technology used in smart cars could threaten national security.

Commerce Secretary Gina Raimondo emphasized that the rules will apply even to vehicles produced domestically. Cars that contain a "sufficient nexus" to either Russia or China will be prohibited from sale.

According to US officials, vehicles and their components manufactured in China may pose significant security risks. The new regulations will take effect for Chinese and Russian software in vehicles manufactured for model year 2027, while restrictions on hardware imports will come into force by 2030. Initially, these rules will apply to passenger cars, but there is potential for extension to trucks and buses in the future.

Raimondo stated, "This is a targeted approach to ensure we keep the People’s Republic of China and Russian-manufactured technologies off American roads. Car technology today goes beyond mere mechanics; they include advanced computing systems." She highlighted that modern cars are equipped with various connected technologies such as cameras, microphones, and GPS.

This new regulation could affect companies like BYD, a Chinese electric vehicle manufacturer that currently produces buses in California. The US has been making efforts to reduce reliance on Chinese imports across several industries, including solar panel technology.

In a separate development, on the same day the car regulations were announced, President Joe Biden signed an executive order that allows for the construction of data centers on federal land to support artificial intelligence developments. This initiative aims to promote the establishment of new infrastructure essential for AI growth.

Biden's statement regarding this "historic" order indicated a commitment to ensuring that the US remains competitive in future technologies while adhering to environmental standards. The order includes provisions requiring that new data centers utilize renewable energy sources and mandates a focus on reducing electricity costs for consumers.

Part of this initiative will involve the opening up of land managed by the Defense Department to be used for AI data centers. Furthermore, government departments will be tasked with improving power transmission lines at federal sites to accommodate the industry's needs.

Despite the positive intentions behind the initiative, there are growing concerns regarding the environmental footprint of data centers. Studies indicate that AI technologies could contribute significantly to electronic waste in the future, potentially resulting in up to 2.3 million tonnes of e-waste by 2030. While the executive order does not explicitly address recycling or e-waste management, it does focus on ensuring that developments do not result in higher electricity costs for the public.

US, technology, security