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US to ban smart cars containing Chinese tech

Daniel Nenni

Admin
Staff member
BYD electric cars for export wait to be loaded onto a ship at a port in Yantai, in eastern China's Shandong province (-)

BYD electric cars for export wait to be loaded onto a ship at a port in Yantai, in eastern China's Shandong province (-) (-/AFP/AFP)

The United States finalized a rule Tuesday effectively barring Chinese technology from cars in the American market, taking aim at software and hardware from the world's second biggest economy over national security risks.

The announcement, which also pertains to Russian technology, comes as outgoing President Joe Biden wraps up efforts to step up curbs on China, and after a months-long regulatory process.

The rule follows an announcement this month that Washington is mulling new restrictions to address risks posed by drones with tech from adversaries like China and Russia.

"Cars today aren't just steel on wheels -- they're computers," said Commerce Secretary Gina Raimondo.

She noted that modern vehicles contain cameras, microphones, GPS tracking and other technologies connected to the internet.

"This is a targeted approach to ensure we keep PRC and Russian-manufactured technologies off American roads," she added, referring to the People's Republic of China.
The final rule currently applies just to passenger vehicles under 10,001 pounds, said the US Commerce Department.

It plans, however, to issue separate rulemaking aimed at tech in commercial vehicles like trucks and buses "in the near future."

For now, Chinese electric vehicle manufacturer BYD, for example, has a facility in California producing buses and other vehicles.

National Economic Advisor Lael Brainard added that "China is trying to dominate the future of the auto industry."

But she said connected vehicles containing software and hardware systems linked to foreign rivals could result in misuse of sensitive data or interference.

Under the latest rule, even if a passenger car were US-made, manufacturers with "a sufficient nexus" to China or Russia will not be allowed to sell such new vehicles incorporating hardware and software for external connectivity and autonomous driving.

This prohibition on sales takes effect for model year 2027.

The restriction also bans the import of the hardware and software if they are linked to Beijing or Moscow.

The software curbs take effect for model year 2027 while the hardware controls come into play for model year 2030.

Just a day earlier, Washington announced fresh export rules on chips used for AI, furthering efforts to make it hard for China and other rivals to access the technology.

The restrictions also tightened rules surrounding the sharing of cutting-edge AI models.

Washington has expanded efforts in recent years to curb exports of state-of-the-art chips to China, which can be used in AI and weapons systems, as Beijing's tech advancements spark concern among US policymakers.

But the rollout of many plans will fall to incoming President-elect Donald Trump, whose return to the White House early next week promises a raft of changes to government policies.

On Monday, Biden urged the Trump administration not to cede AI dominance to China.

"We must not offshore artificial intelligence, as we once did with computer chips and other critical technologies," Biden said in an address at the State Department.

"We are in the lead, and we must stay in the lead," he added, saying it should be Washington and its closest allies at the frontier of this technology.

US efforts to restrict Chinese tech come as American officials work to boost its domestic industries as well.

On Tuesday, Biden issued an executive order to accelerate the pace at which infrastructure for artificial intelligence development can be built in the country.

"We will not let America be out-built when it comes to the technology that will define the future," said Biden in a statement.

But the US actions could attract Beijing's retaliation, with the Chinese Commerce Ministry already calling Monday's AI-related export curbs "a flagrant violation" of international trade rules.

"China will take necessary measures to firmly safeguard its legitimate rights and interests," the ministry said.

 
Under the latest rule, even if a passenger car were US-made, manufacturers with "a sufficient nexus" to China or Russia will not be allowed to sell such new vehicles incorporating hardware and software for external connectivity and autonomous driving.

That would be a news for Ford. Check their infortainment system developer, and whom they outsource to...

I would not be surprised, if it is not only Ford who has almost all of its car software written by companies from either in China, Russia, or India.
 
What is the point?

Actually am surprised MAGA not pushing for all "Tech" to be removed due to its manipulation by the Deep State!

Wonder what the tipping point will be when Politicians realise its a waste of time blocking this and that?
 
That would be a news for Ford. Check their infortainment system developer, and whom they outsource to...

I would not be surprised, if it is not only Ford who has almost all of its car software written by companies from either in China, Russia, or India.

When PRC/CCP keeps conducting military drills and sending missiles, warships, bombers, and fighter jets around Taiwan, Japan, South Korea, and Philippines, what should we expect?

This decoupling process will accelerate and go deeper and wider. Some companies may still believe they can go around it, such as Ford. I think they will finally read the US policy signals that had been sent out a while back.

BTW, CCP puts many restrictions on American companies, why not for US to do the same? Free trade is not a one-way street and definitely not for a brutal detector regime.
 
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What is the point?

Actually am surprised MAGA not pushing for all "Tech" to be removed due to its manipulation by the Deep State!

Wonder what the tipping point will be when Politicians realise its a waste of time blocking this and that?

The Trump administration will go along and support this type of policy because it has bipartisan supermajority backing. Don't blame the worsening situation on the politicians in Washington, D.C. The Chinese Communist Party has gone rogue and behaved like a gangster in many international and internal affairs. One of the obvious consequences is decoupling. The U.S. policy thinking is very straightforward: decoupling, seeking peace, and preparing for war.

By now, if any companies still believe the old happy days can return, I think they are either naive or braindead.
 
This decoupling process will accelerate and go deeper and wider. Some companies may still believe they can go around it, such as Ford. I think they will finally read the US policy signals that had been sent out a while back.

What I am pointing to is that as the realisation of what it will mean to actually truly disconnect USA from the matrix looms larger, the more huge eye opener cases like Ford will come to light. The number will be scary.

An average electronic widget on the supermarket shelf = Indian software development, Chinese manufacturing, Eastern European engineering, American marketing
 
To avoid escalating conflicts in Asia, the U.S. should focus on establishing a diversified semiconductor supply chain. While efforts are underway to position the U.S. as a manufacturing base for leading-edge semiconductors, there should be complementary policies, such as tariffs. These tariffs are not intended to target specific regions but rather to introduce economic measures that encourage U.S. fabless companies to place orders with local fabs, such as Intel Foundry Services (IFS).

This approach is necessary because public companies often prioritize short-term goals due to the pressure of reporting periods. Arguably, the only U.S. company with a long-term focus is Intel. However, the market and its competitors often undermine Intel's efforts, frequently criticizing and underestimating the company.

Therefore, long-term initiatives require the U.S. government to introduce supportive policies that incentivize such behaviors. Even Taiwan Semiconductor Manufacturing Company (TSMC), despite its dominance, appears to have a short-term focus, as evidenced by its decision to prioritize 2nm fabs in Taiwan due to shorter lead times and lower costs.

This underscores the importance of government intervention to ensure a robust and resilient domestic semiconductor ecosystem.
 
When PRC/CCP keeps conducting military drills and sending missiles, warships, bombers, and fighter jets around Taiwan, Japan, South Korea, and Philippines, what should we expect?

This decoupling process will accelerate and go deeper and wider. Some companies may still believe they can go around it, such as Ford. I think they will finally read the US policy signals that had been sent out a while back.

BTW, CCP puts many restrictions on American companies, why not for US to do the same? Free trade is not a one-way street and definitely not for a brutal detector regime.

I think its the rules of the game though.

They are different in each country.

Some countries quite open , and some are not.

The choice you then have is to play by the rules or not , nobody is actually banning anyone. Just need to make the game close to impossible to play.
 
That would be a news for Ford. Check their infortainment system developer, and whom they outsource to...

I would not be surprised, if it is not only Ford who has almost all of its car software written by companies from either in China, Russia, or India.
Is Microsoft completely out of the Ford ecosystem at this point? (Microsoft / Ford Sync)
 
Is Microsoft completely out of the Ford ecosystem at this point? (Microsoft / Ford Sync)
No idea, I just know that many of car electronics around the world is a completely outsourced software, and often hardware product. Harman, for example, is almost completely Chinese, despite being owned by Koreans. And that means cars which have Harman driving assist/autonomous driving systems are also covered by that definition.
 
The tit for tat continues. Hopefully this will put Trump on solid ground for negotiation to stop this nonsense.

China urges US to stop 'unreasonable suppression' of its firms in latest auto row​


BEIJING, Sept 25 (Reuters) - China urged the United States on Wednesday to stop "unreasonable suppression" of its companies, in response to U.S. proposals to ban Chinese software and hardware in vehicles on its roads due to national security concerns.
"The U.S. move has no factual basis, violates the principles of market economy and fair competition, and is a typical protectionist approach," said a spokesperson for the commerce ministry.

 
If companies can combine this platform with Intel's software-defined vehicle system and Mobileye's autonomous vehicle technology, electric cars could become both affordable and safe. I would be very interested in such a product. I believe U.S. companies could import this platform and further develop it.

If the U.S. continues its current policy of blocking Chinese automakers, other countries, such as Australia, will benefit as electric cars become more affordable.

 
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