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Biden Administration Bans “Nearly All” Chinese Vehicles


The Biden administration this week finalized rules “that will effectively bar nearly all Chinese cars and trucks from the U.S. market” (Reuters). 
 
What’s going on: The final regulations follow the September release of the proposed version, which the NAM urged Commerce’s Bureau of Industry and Security to revise.  

  • They require manufacturers of connected vehicles—those that use technologies to communicate with each other and other systems—that use Chinese or Russian technology to find and use new suppliers. Software restrictions are set to take effect in the 2027 model year, and hardware prohibitions in model year 2030. 
  • While the draft rule was to apply to all connected vehicles, the final rule only applies to passenger vehicles. Commercial vehicles will get their own, similar rule later. 

Changes made: The regulation released this week includes several changes recommended by the NAM, including:   

  • Technology developed before March 17, 2026, and not substantially modified later will be exempted from the rule; 
  • BIS will be able to issue “general authorizations” by which companies can engage in certain types of otherwise-prohibited transactions if they meet specific conditions; and  
  • Lighter compliance burdens and recordkeeping requirements. 

Why it’s still problematic: Shortcomings remain in the final rules, however.

  • A very broad universe of technologies, such as Bluetooth, 5G and Wi-Fi, will be affected, calling into question the ability of the auto industry to incorporate the technologies into vehicles.
  • The problem will be compounded by the fact that Chinese workers and companies play an increasingly integral role in the development of these technologies.  
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