Alan Szwajkowski
USA considers rules to restrict Chinese vehicle software
To address growing concerns about national security and technological dominance, the U.S. Department of Commerce is drafting regulations to curb the influence of Chinese vehicle software in the domestic automotive market. The proposed rules are expected to be released in August and are part of a broader strategy to mitigate potential risks associated with foreign technology in critical industries.
Background and context
Over the past decade, China has become a global leader in the development of advanced vehicle technologies. Autonomous driving systems and advanced in-vehicle software are at the centre of this development. Thanks to significant government investment and support, Chinese companies have now gained a foothold in international markets, including the USA. However, this rapid expansion has raised fears among policy makers and security experts that Chinese-made software could be used for espionage purposes or jeopardise critical infrastructure.
Main components of the proposed legislation
Any vehicles of automation level 3 or higher that are to be sold on the US market are affected. The regulations are to be based on the following cornerstones: Strict safety requirements for all vehicle software, demonstrated through certifications and software testing. Implementation of robust data protection measures to prevent the unauthorised collection and transmission of sensitive information through vehicle software. Disclosure of accurate information about software supply chains to identify and minimise risks associated with the use of the software. Import restrictions or bans on certain types of software or software components, especially those considered critical to the operation and safety of vehicles.
Impact on the automotive market
While the security concerns of Chinese software are crucial, all autonomous driving vehicles will be affected. Manufacturers will have to make significant investments in cyber security and supply chain management. Companies will have to find alternative suppliers or develop their own solutions to replace restricted Chinese software components. Chinese vehicle manufacturers, on the other hand, will find it considerably more difficult to enter the US market. The regulations will therefore have an overall impact on international market dynamics and the competitive landscape.
