The Biden Administration is moving to ban Chinese software in self-driving vehicles – as the relationship between the two global superpowers continues to sour.
In a move that points to wider fears surrounding China’s technological influence, the federal government will soon roll out legislation to prevent Chinese companies from testing their technology on US soil. The federal government has already barred Huawei from selling products in the US and looks set to follow suit with TikTok.
Timelines are not forthcoming, but experts predict that the Department of Commerce (DoC) could table the bill within the next few weeks.
Chinese Automotive Tech in US Government Ban
According to Reuters, the DoC is putting finishing touches to a ban that would leave Chinese big tech companies, such as search engine giant Baidu, out in the cold.
As per the rule, Chinese software would be banned from vehicles with Level 3 automation and above. This refers to cars that fully ‘allow drivers to take their eyes off the road’ – from those that still require a driver, to fully autonomous robo-taxis.
This just in! View
the top business tech deals for 2024 👨💻
China has been testing vehicles on US roads for years. Since 2017, autonomous vehicles have clocked up over 1.8 million miles in California alone. But this move could put a sizeable dent in the country’s status as top dog of the global market – with domestic production expected to reach 35 million vehicles by 2025.
China Pushes Back on Ban
Unsurprisingly, Chinese officials have been quick to voice their dissent. A spokesperson from the Ministry of Foreign Affairs condemned ‘the US’s generalization of the concept of national security and discriminatory practices.’ Retaliation is likely.
Relations between US and China have been tense in the last few years, with former President Donald Trump adopting a particularly hardline stance against the superpower, including banning Huawei from sale in the US. This latest move seeks to loosen China’s grip on the US market.
The news is set to divide opinion within the US. On the one hand, industry stakeholders will worry that this proposal could stifle innovation and growth. At the same time, it will likely be met with delight by people who are wary of China’s geopolitical power.
The news will likely also be welcomed by Elon Musk, whose Tesla line up faces increasing competition from Chinese companies, although he did recently speak out against the 100% tariff on Chinese electric vehicles, imposed by Biden.
Global Supply Chains to Face Difficulties
It remains to be seen whether the federal government could enforce a piece of legislation as sweeping as this – but the impact across the automotive industry would be huge.
With cars made from an average of 30,000 parts, this proposal could ‘wreak havoc’ on supply chains around the world. Vendors would be forced to adopt new technologies at short notice, as well as proving to US regulators that they’re steering clear of Chinese software. For an automotive industry that is built upon a ‘”just-in-time” (JIT) supply-chain model,’ the impact could be disastrous.
Whatever the outcome, one thing is for certain – US national security anxieties are spiraling. Commerce is just the latest battleground in a long-running saga.
