Chinese cars are close to a US ban – and that could make EVs a lot more expensive

Biden administration makes its feelings clear on Chinese cars

15 Jan 2025, 18:57 · TechRadar

News By Leon Poultney published 15 January 2025

(Image credit: Smart)

Finalized rules ban Chinese or Russian-made software and hardware
Legislation prevents Chinese companies testing autonomous vehicles
Measures will be phased in, beginning with model year 2027 vehicles

With an impending departure from the White House on the 20th of this month, the Biden administration has made one of its final decisions, which looks set to have a massive impact on electric vehicle sales in North America.

In September last year, the US Commerce Department proposed a blanket ban on the sale of connected hardware and software in the automotive space, as well as other forms of consumer technology, such as drones, citing a threat to national security.

This week, the administration is finalizing rules that will effectively ban the sale of both Chinese and Russian-made trucks and cars in the US, as it looks to protect national security interests and stave off the threat of cheaper Chinese models impacting domestic automakers.

Commerce Secretary Gina Raimondo told Reuters in an interview: "It's really important because we don't want two million Chinese cars on the road and then realize ... we have a threat.”

Essentially, the ban covers any piece of software or hardware derived from China (or Russia) that connects a modern vehicle to the wider world, including GPS used by sat nav systems, Wi-Fi, Bluetooth, satellite and components for cellular data connections.

Add this to the sheer weight of camera and sensor technology, both inside the vehicle and out, as well as microphones for voice activated software, and Commerce Secretary Gina Raimondo believes that any “foreign adversary” with access to the data collated by the components could “pose a serious risk to both our national security and the privacy of U.S. citizens,” according to a report published by the Bureau of Industry and Security.

The decision will have a massive impact on electric vehicle uptake in North America, seeing as it will affect any manufacturer that leans on Chinese suppliers for any of the aforementioned software and hardware, with some marques potentially disappearing from sale completely.

Get daily insight, inspiration and deals in your inbox

Contact me with news and offers from other Future brandsReceive email from us on behalf of our trusted partners or sponsors