The sweeping regulations finalized by the Biden administration target both software and hardware components from China and Russia in connected vehicles. Key provisions include12:

• Prohibition of Chinese and Russian-made software in vehicle connectivity systems, effective for model year 2027

• Ban on hardware components from these countries in connected vehicle systems and automated driving technologies, starting with model year 2030

• Restrictions on sales of connected vehicles by manufacturers with a "sufficient nexus" to China or Russia, even if produced in the U.S.

These measures apply specifically to passenger vehicles under 10,001 pounds, with future rulemaking planned to address commercial vehicles like trucks and buses3. The announcement comes just days before President-elect Donald Trump is set to enter the White House, highlighting the outgoing administration's efforts to strengthen curbs on potential technological threats from adversary nations45.

The new regulations impose specific restrictions on software and hardware components in connected vehicles:

• Software bans target connectivity systems, including those for internet access, vehicle-to-vehicle communication, and over-the-air updates12.

• Hardware restrictions focus on components used in automated driving technologies and connected vehicle systems13.

• The rules prohibit the use of Chinese and Russian-made technologies in these critical areas, even if the final vehicle assembly occurs in the United States or other countries45.

These measures aim to prevent potential vulnerabilities that could be exploited for data collection or remote manipulation of vehicles2. The Commerce Department emphasized that the restrictions are "targeted" to address national security concerns while minimizing disruption to the automotive industry13.

The Biden administration's decision to ban Chinese and Russian technology in smart cars stems from significant national security concerns. According to Commerce Secretary Gina Raimondo, modern vehicles are essentially "computers on wheels," equipped with cameras, microphones, GPS tracking, and other internet-connected technologies that could potentially be exploited1. The primary fears revolve around:

• Data collection: Smart cars gather vast amounts of sensitive information about users' movements, conversations, and personal habits2.

• Remote manipulation: There are concerns about the potential for foreign actors to remotely control or interfere with connected vehicles3.

• Supply chain vulnerabilities: The ban aims to limit adversaries' access to U.S. supply chains and prevent the integration of potentially compromised components32.

These measures reflect the broader geopolitical tensions and technological rivalry between the United States and countries like China and Russia, as the U.S. government seeks to safeguard critical infrastructure and protect citizens' privacy in an increasingly connected world41.

The implementation of the new regulations on connected vehicle technology follows a phased approach:

• Software-related prohibitions take effect for Model Year 2027 vehicles12

• Hardware-related prohibitions begin with Model Year 2030, or January 1, 2029, for units without a model year31

• Prohibitions on sales of connected vehicles by manufacturers with significant ties to China or Russia, even if produced in the U.S., start with Model Year 20271

This timeline allows manufacturers time to adapt their supply chains and technology sourcing. The gradual rollout aims to balance national security concerns with the need for industry adjustment, giving automakers several years to comply with the new requirements and find alternative sources for critical components and software45.