In a pivotal decision for the auto industry, the U.S. Department of Commerce proclaimed a final rule on Tuesday. This rule bars the sale or importing of connected cars from adversarial states, primarily China and Russia, citing national security concerns. Further clamping down on autonomous trials, the verdict also restricts Chinese firms, such as WeRide and Pony AI, from testing self-driving vehicles on American roads.
According to National Economic Advisor, Lael Brainard, “China’s ambition to control the auto industry’s future could lead to misuse of sensitive data by malicious actors, putting the American people at risk.” Brainard further emphasized guaranteeing “a more secure American auto industry.”
Beginning from 2027, the rule puts a ban on software, followed by hardware prohibitions in 2029. Pre-existing Chinese software unaffected by these bans, given overseas firms can’t access this software post-ruling.
The rule’s caveat, however, allows vehicles heavier than 10,000 pounds, thereby permitting Chinese manufacturer, BYD, to continue assembling electric buses in California.
Several Chinese autonomous vehicle companies, Apollo Autonomous Driving and WeRide, have active permits for driver-free tests in California. Pony AI, a newly public firm, is allowed to run tests with a safety driver. Though the company noted a trivial risk of not being able to continue its limited robotaxi testing in the U.S. due to the imminent ban.
In light of this final ruling, TechCrunch has asked the California Department of Motor Vehicles (DMV) whether it plans to revoke these permits, given the DMV previously announced its intention to follow the Commerce Department’s lead.
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