The government’s ultimate decision to ward off national security risks sees the prohibition of Chinese and Russian connected cars in the US. This move will also disallow autonomous vehicle testing on American roads by Chinese firms, such as Pony AI and WeRide.
According to Lael Brainard, National Economic Advisor, the ruling aims to guard the American public against the misuse of sensitive data possible through these foreign linked systems. The stipulation also ensures stronger security for the American auto industry battling foreign dominance threats.
The Commerce Department revealed that the implementation of software bans will begin in the 2027 model year, followed by hardware bans two years later. However, Chinese-developed software released before these new rules will be exempted, provided the Chinese firm doesn’t have software access.
The enactments have a specific exemption for vehicles weighing over 10,000 pounds, enabling China’s BYD to continue assembling electric buses in California.
Currently, there are few Chinese autonomous driving companies with active testing permits in California, including Apollo Autonomous Driving and WeRide. Amid the impending ban, these companies stand to lose their testing permissions as the California Department of Motor Vehicles is expected to align with the Commerce Department’s restrictions.
The development is being closely watched by industry stakeholders, as it signifies a significant move set to shape the future of the automotive industry in the US.
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