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The Biden administration has finalized a rule that effectively bans new personal smart cars with Chinese and Russian technology from American roads and takes steps to allow President-elect Donald Trump to extend those restrictions to commercial vehicles.
The U.S. Commerce Department’s Bureau of Industry and Security announced its final rule Jan. 14, saying in a statement that technologies from China and Russia “present an undue and unacceptable risk to U.S. national security.”
U.S. officials say modern vehicles that have devices that connect them to the internet are akin to computers and can potentially gather sensitive data — including about drivers or owners — infringing on consumer privacy, or allow foreign adversaries to remotely manipulate cars.
The rule prohibits the import or sale of connected vehicles with specific pieces of hardware or software that have a “sufficient nexus” to China or Russia or the sale of those components separately. It also bans manufacturers with links to Russia or China from selling U.S.-made vehicles within the U.S.
The finalized auto rule applies only to passenger vehicles weighing 10,000 pounds or less. Some of the bans take effect as soon as model year 2027 with others as late as model year 2030.
The Commerce Department said it intended to begin a separate process directed at commercial vehicles, like buses and trucks. It would be up to the incoming administration to finalize those restrictions.
The Biden administration is moving to wrap up its work on key issues, including those aimed at China, before Trump takes office on Jan. 20. The administration has also launched a probe that could lead to new tariffs on Chinese semiconductor chips.
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