The U.S. Commerce Department has issued a rule banning connected vehicle technologies linked to China and Russia, citing national security risks. The rule targets Vehicle Connectivity Systems (VCS) and Automated Driving System (ADS) hardware and software. It applies to passenger vehicles, including those manufactured domestically with Chinese or Russian components. Implementation begins in January 2026 for software and January 2029 for hardware. Commercial vehicles like trucks and buses are currently exempt.
Automakers must annually certify compliance, and violations may lead to fines or further restrictions. Industry representatives have supported the phased rollout, which provides time to restructure supply chains.
Expert Analysis:
This decisive move by the U.S. underscores growing concerns about supply chain vulnerabilities in critical sectors like automotive technology. The rule reflects fears that adversaries could exploit connected systems for espionage, infrastructure sabotage, or remote vehicle manipulation.
While the phased implementation timeline offers manufacturers breathing room, it also places immense pressure on the global supply chain to decouple from Chinese and Russian tech dependencies. This ban not only intensifies the geopolitical tech race but also signals a broader trend toward digital sovereignty.
Read the full article here.
