In the News: US to Propose Barring Chinese Software in Cars; China Tightens Offshore Investment; and Chinese Firms Plan to Expand to the US Midwest

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US to Propose Banning Chinese Software in Autonomous Cars

The U.S. Commerce Department is expected to propose barring Chinese software in autonomous and internet-connected vehicles, according to Reuters. In November, a group of U.S. lawmakers raised concerns about Chinese companies collecting and handling sensitive data during tests in the U.S. of autonomous vehicles. Global car manufacturers have become increasingly dependent on Chinese suppliers for technology and the U.S. is taking action before Chinese cars become dominant in the U.S.

The proposed rule would restrict Chinese software in U.S. vehicles with Level 3 automation and above, which also would have the effect of banning the testing of Chinese autonomous vehicles in the U.S. It would also ban vehicles with advanced wireless communications abilities developed by the Chinese. Automakers and suppliers would need to verify that none of their connected vehicles or advanced autonomous vehicle software was developed in China. The restrictions aim to keep Chinese companies from collecting data on U.S. drivers. The Commerce Department said it is concerned about national security risks.

Alan Estevez, Commerce undersecretary for industry and security, considered a range of possible measures in July, saying the agency was looking at both vehicle software and components. The Commerce Department will issue a proposed rule focused on "specific systems of concern." The rules are likely to focus on software and systems that collect vehicle data but could include any hardware systems with embedded software. There will likely be a later round of restrictions that target hardware for autonomous and internet-connected vehicles.