As a Rhode Islander, I am a big fan of our former Governor and now Secretary of Commerce, Gina Raimondo. She has always had her eye on the ball of the rapidly developing data privacy and cybersecurity risks and threats to national security. She is showing her continued commitment to data privacy, cybersecurity, and the safety of U.S. consumers through a new proposed rule prohibiting the sale or import of connected vehicles that include component parts from cyber adversaries. This is significant for our protection and national security.
This week, the White House announced that the Department of Commerce issued a notice of proposed rulemaking “that would, if finalized as proposed, prohibit the sale or import of connected vehicles that incorporate certain technology and the import of particular components themselves from countries of concern, specifically the People’s Republic of China (PRC) and Russia.” Of course, this is significant as the PRC and Russia are the United States’ most threatening cyber adversaries.
According to the White House’s announcement, the Department of Commerce has found that vehicles’ increasing connectivity creates opportunities to collect and exploit sensitive information. Certain hardware and software in connected vehicles enable the capture of information about geographic areas or critical infrastructure, and present opportunities for malicious actors to disrupt the operations of infrastructure or the vehicles themselves. Commerce has determined that certain technologies used in connected vehicles from the PRC and Russia present particularly acute threats. These countries of concern could use critical technologies within our supply chains for surveillance and sabotage to undermine national security.
The proposed rule would “prohibit the import or sale of certain connected vehicle systems designed, developed, manufactured, or supplied by entities with a sufficient nexus to the PRC or Russia.” The connected systems include those that are connected through Bluetooth, cellular, satellite, and Wi-Fi as well as automated driving systems, including driverless systems.
If a final rule is adopted, the prohibitions on software would take effect for cars manufactured in 2027, and the proposed prohibition on hardware would go into effect for models manufactured in 2029 and 2030. The proposed rule follows President Biden’s increase in the tariff rates on Chinese electric vehicles from 25% to 100% in May 2024.