The US government plans to ban Chinese and Russian technology in connected and self-driving vehicles, citing national security risks. Starting from 2027 for software and 2030 for hardware, the ban targets components related to autonomous driving and connectivity in cars, trucks, and buses. The move aims to protect against potential espionage and sabotage, with officials warning of scenarios where foreign adversaries could manipulate or control vehicles on American roads.
“Cars today have cameras, microphones, GPS tracking, and other technologies connected to the internet,” said U.S. Secretary of Commerce Gina Raimondo. “It doesn’t take much imagination to understand how a foreign adversary with access to this information could pose a serious risk to both our national security and the privacy of U.S. citizens,” she added.
This decision is part of a broader strategy to counter heavily subsidised Chinese automakers and safeguard the US automotive industry. The ban has sparked criticism from China, calling it discriminatory, while experts anticipate similar measures in the EU to address the rapid rise of Chinese car manufacturers.
Impact on US automakers
The ban’s immediate impact on US automakers could be significant. Manufacturers will need to source alternative technologies that comply with the new regulations. This might increase production costs and affect the supply chain. Industry experts believe it will take time to adjust, given the complexity of vehicle manufacturing. The Alliance for Automotive Innovation group representing major car companies noted that manufacturers cannot change supply chains overnight. The need for new suppliers could delay the rollout of new vehicle models.
Criticism and international response
China’s Foreign Ministry has criticised the ban, describing it as discriminatory against Chinese companies. Foreign Ministry spokesman Lin Jian stated that China opposes the US’s broadening concept of national security. The Chinese government has invested billions in subsidising its automotive industry, enabling Chinese car manufacturers to offer competitive pricing globally. The ban could disrupt these manufacturers expansion plans in the US market.
Potential effects on the Netherlands
The Netherlands could face indirect consequences from the US ban. The Dutch automotive industry, including collaborations with both American and Chinese companies, might need to reassess its partnerships and supply chains. The European Union has previously implemented higher import tariffs on Chinese electric vehicles to protect local manufacturers. Experts predict that the EU may introduce similar measures targeting Chinese automotive technology. Such actions could reshape European market dynamics, affecting Dutch automakers and their suppliers.
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