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Biden Administration Finalizes Chinese Car Software And Hardware Rules

We reported last week that the outgoing Biden administration was in the process of finalizing rules on Chinese car software and hardware being imported to the United States. Today, we have more details on how the Biden administration is leaving things for the second Trump administration, which takes over on Monday.

The rules will be a bit looser than initially expected. Rather than a blanket ban on all automotive software from China, the Department of Commerce said Chinese software that was developed before the new rules kicked in could still be imported as long as a Chinese company is not maintaining it. Because of that, it’s possible that GM and Ford could continue importing the Chinese-built Buick Envision and Lincoln Nautilus since they’re American companies.

Lincoln Nautilus front three quarter angle.

“It’s really important because we don’t want two million Chinese cars on the road and then realize … we have a threat,” Commerce Secretary Gina Raimondo told Reuters in an interview, citing national security concerns.

Another loosening of the initially proposed rules is an exemption for vehicles heavier than 10,000 pounds. This will allow Chinese firm BYD to continue building the K series and C series electric buses at its Lancaster, California facility (which employs about 750 Americans) and selling them to transit agencies, airports, and other clients across North America. The Commerce Department plans to propose new rules banning Chinese software and hardware in commercial vehicles like trucks and buses, but the Trump administration will make the final call.

“The final connected vehicles rule is the product of a thorough and consultative process by the Bureau of Industry and Security,” Alliance for Automotive Innovation CEO John Bozella said in a statement. “The auto industry communicated our support for a final rule that addresses the unacceptable risks associated with information and communications technology and services designed, developed, manufactured, or supplied by foreign adversaries like China and Russia. We also communicated (and the rule recognizes this) that changing the world’s most complex supply chain can’t happen overnight. In this respect, the final rule strikes a good balance.” The Alliance for Automotive Innovation represents multiple large automakers, including GM, Toyota, Volkswagen, and Hyundai.

Wuling Mini EV, a Chinese car.

Although the newly proposed rules aren’t as strict as originally expected, they still effectively bar Chinese automakers from selling Chinese-built production cars to consumers in the United States. Meanwhile, President Donald Trump, who begins his second term on January 20th, intends to prevent Chinese car imports but is open to Chinese firms building cars in the States. “We’re going to give incentives, and if China and other countries want to come here and sell the cars, they’re going to build plants here, and they’re going to hire our workers,” Trump told Reuters.

George is an automotive journalist with soft spots for classic GM muscle cars, Corvettes, and Geo.

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Comments

  1. For a whopping 6 days, so why even report on it?

    Reply
  2. Increase tariffs and fines, even for Chinese vehicles put together in the U.S.

    Reply
  3. Should implement similar policies as China did when first launching support of their domestic automotive industry.

    If they want to sell vehicles here, they need to partner with a US domestic manufacturer where the US company has greater than 50% controlling interest in the JV.

    And they must be built in the US. Using North American supply chains. And not imported Chinese parts and materials.

    Reply
  4. Bring the Zephyr here as well please

    Reply

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