United States moves to ban Chinese software, hardware from all vehicles in America – National Achi-News

The US government is proposing a ban on key Chinese software and hardware in connected vehicles on American roads due to national security concerns, the White House announced on Monday.

The move marks the latest crackdown on China’s auto industry by the Biden administration and would effectively bar all Chinese cars from entering the US market. It also raises questions about whether Canada will follow suit, having matched America’s lead in slapping high tariffs on Chinese electric vehicles and weighing further restrictions.

The proposed regulation by the US Commerce Department, which still needs to be finalized, would also force American and other major automakers in the coming years to remove key Chinese software and hardware from vehicles in the US.

A fact sheet from the White House says the proposed rule targets technology and components imported from “countries of concern,” which also includes Russia.

“When foreign adversaries build software to make a vehicle, that means it can be used for surveillance, which can be controlled remotely, which threatens the privacy and safety of Americans on the road,” said the US Commerce Secretary. States, Gina Raimondo, at a press briefing.

“In an extreme scenario, a foreign adversary could shut down or take control of all their vehicles operating in the United States all at the same time — causing accidents, blocking roads.”

But China has become a particular focus amid fears that Beijing is trying to flood the global market with low-cost EVs through significant government subsidies that have accelerated domestic production.

The Biden administration said this summer it was imposing a 100 percent tariff on Chinese-made electric vehicles and a 35 percent duty on imported components such as batteries and key minerals and metals such as steel and aluminum. The new tariffs came into effect this month.

Canada followed suit on higher tariffs for EVs, Chinese steel and aluminum and is holding consultations on whether to do the same for batteries, semiconductors and other components.

Asked by MPs at the House of Commons international trade committee on Monday how Canada should move forward from those consultations, Flavio Volpe, president of the Automotive Parts Manufacturers Association, said simply: “Match the US measures. “

The Canadian Automobile Manufacturers Association has endorsed Chinese EV tariffs and warned that “there is simply too much at stake” for the industry and the broader economy “if Canada is misaligned” from US policy, particularly when for the Canada-United States-Mexico Agreement to come up for review in 2026.

Relatively few Chinese-made cars or light duty trucks are imported into the United States and Canada. But Raimondo said the U.S. is acting “before suppliers, automakers and auto components linked to China or Russia become common and widespread in the U.S. automotive sector.”

“We are not going to wait until our roads are filled with cars and the risk is extremely significant before taking action,” he said.

US concerns about Chinese software and security are behind other recent tech crises in recent months, including a law that could impose a ban on the popular Chinese-owned social media platform TikTok.

The Alliance For Automotive Innovation, a group representing major carmakers including General Motors, Toyota, Volkswagen and Hyundai, has warned that it would take time to change hardware and software. The group could not detail the extent to which Chinese-made components are common in US models.

The actions by the United States and Canada against China’s auto industry come as both countries seek to establish their own domestic electric vehicle manufacturing bases, with links between the two for the North American supply chain.

The Canadian government and provinces like Ontario have jointly pledged up to $53 billion in tax credits, production subsidies and other investments to entice companies like Volkswagen and Honda to build new electric vehicle production facilities in Canada, according to a June report by the parliamentary budget officer.

Those commitments have attracted over $46 billion in investments, the report said.

But experts have warned that further tariffs on Chinese components could put pressure on existing supply chains in the short term and increase prices for electric vehicles.

Joanna Kyriazis, director of public affairs at Clean Energy Canada, told a House of Commons committee Monday that Canada needs to prioritize affordability and accessibility in its electric vehicle policy moving forward.

“Now that Canada has decided to impose a 100 percent tariff on Chinese-made EVs, the key question is what will Canadian governments and manufacturers do with this time they have bought themselves?” Kyriazis said.

He said Clean Energy Canada is recommending that the government consider lower tariffs on Chinese electric vehicles, keeping affordability in mind.

The group urged the federal government to adopt an electric vehicle affordability package with three broad policy recommendations.

“First, defund and extend the federal incentive program that helps Canadian drivers go electric. This program is more popular than ever this year, but it is expected to end in March 2025,” Kyriazis said.

The second suggestion was to ensure that new and existing condos and apartment buildings are allowed to charge electric vehicles.

“Millennial Canadians are most interested in going electric, but they often live in or rent apartment buildings where access to charging is limited,” he said.

“And finally (the federal government should) maintain a strong EV availability standard, which requires automakers to make more EV models available to Canadians and will help lower the price of EVs.”

Kyriazis said that making EVs more affordable for consumers would also offer more market certainty for all stakeholders in the supply chain, such as electric vehicle charging providers, electric utilities and mining companies, to plan and invest in line with the number expected from electric vehicles.

– with files from Reuters

& copy 2024 Global News, a division of Corus Entertainment Inc.