Wednesday, January 15, 2025


Beijing ‘firmly opposes’ US ban on smart cars with Chinese tech


By AFP
January 15, 2025


BYD electric cars wait to be loaded onto a ship in Suzhou, China. Washington has finalised a rule effectively barring Chinese technology from cars in the US market - Copyright AFP/File -

Beijing on Wednesday said it “firmly opposes” a US move to effectively bar Chinese technology from smart cars in the American market, saying alleged risks to national security were “without any factual basis”.

“Such actions disrupt economic and commercial cooperation between enterprises… and represent typical protectionism and economic coercion,” foreign ministry spokesman Guo Jiakun said, adding: “China firmly opposes this.”

Tuesday’s announcement in the United States, which also pertains to Russian technology, came as outgoing President Joe Biden wrapped up efforts to step up curbs on China, and after a months-long regulatory process.

The rule follows an announcement this month that Washington is mulling new restrictions to address risks posed by drones with tech from adversaries such as China and Russia.

US Commerce Secretary Gina Raimondo said that modern vehicles contain cameras, microphones, GPS tracking and other technologies connected to the internet.

“Cars today aren’t just steel on wheels — they’re computers,” she said.

“This is a targeted approach to ensure we keep PRC and Russian-manufactured technologies off American roads,” she added, referring to the People’s Republic of China.

But Guo slammed the move, telling journalists in Beijing that China would “take necessary measures” to safeguard its legitimate rights and interests.

“What I want to say is that the US, citing so-called national security, has restricted the use of Chinese connected vehicle software, hardware, and entire vehicles in the United States without any factual basis,” he told a regular press conference.

“China urges the US to stop the erroneous practice of overgeneralising national security and to stop its unreasonable suppression of Chinese companies.”



– ‘Trying to dominate’ –



The final US rule currently applies just to passenger vehicles under 10,001 pounds (about 4.5 tonnes), the Commerce Department said.

It plans, however, to issue separate rulemaking aimed at tech in commercial vehicles like trucks and buses “in the near future”.

For now, Chinese electric vehicle manufacturer BYD, for example, has a facility in California producing buses and other vehicles.

National Economic Advisor Lael Brainard added that “China is trying to dominate the future of the auto industry”.

But she said connected vehicles containing software and hardware systems linked to foreign rivals could result in misuse of sensitive data or interference.

Under the latest rule, even if a passenger car were US-made, manufacturers with “a sufficient nexus” to China or Russia would not be allowed to sell such new vehicles incorporating hardware and software for external connectivity and autonomous driving.

This prohibition on sales takes effect for model year 2027, and also bans the import of the hardware and software if they are linked to Beijing or Moscow.

US to ban smart cars containing Chinese tech



By AFP
January 14, 2025


BYD electric cars for export wait to be loaded onto a ship at a port in Yantai, in eastern China's Shandong province - Copyright AFP/File -

Beiyi SEOW

The United States finalized a rule Tuesday effectively barring Chinese technology from cars in the American market, taking aim at software and hardware from the world’s second biggest economy over national security risks.

The announcement, which also pertains to Russian technology, comes as outgoing President Joe Biden wraps up efforts to step up curbs on China, and after a months-long regulatory process.

The rule follows an announcement this month that Washington is mulling new restrictions to address risks posed by drones with tech from adversaries like China and Russia.

“Cars today aren’t just steel on wheels — they’re computers,” said Commerce Secretary Gina Raimondo.

She noted that modern vehicles contain cameras, microphones, GPS tracking and other technologies connected to the internet.

“This is a targeted approach to ensure we keep PRC and Russian-manufactured technologies off American roads,” she added, referring to the People’s Republic of China.

The final rule currently applies just to passenger vehicles under 10,001 pounds, said the Commerce Department.

It plans, however, to issue separate rulemaking aimed at tech in commercial vehicles like trucks and buses “in the near future.”

For now, Chinese electric vehicle manufacturer BYD has a facility in California producing buses and other vehicles.

National Economic Advisor Lael Brainard added that “China is trying to dominate the future of the auto industry.”

But she said connected vehicles containing software and hardware systems linked to foreign rivals could result in misuse of sensitive data or interference.

Under the latest rule Tuesday, even if a passenger car were US-made, manufacturers with “a sufficient nexus” to China or Russia are not allowed to sell such new vehicles incorporating hardware and software for external connectivity and autonomous driving.

This prohibition on sales takes effect for model year 2027.

The restriction also bans the import of the hardware and software if they are linked to Beijing or Moscow.

The software curbs take effect for model year 2027 while the hardware controls come into play for model year 2030.

US efforts to restrict Chinese tech come as officials work to boost domestic industries.

On Tuesday, Biden issued an executive order to accelerate the pace at which infrastructure for artificial intelligence development can be built in the country.

“We will not let America be out-built when it comes to the technology that will define the future,” said Biden in a statement.

But the rollout of many plans will fall to incoming President-elect Donald Trump, whose return to the White House next Monday promises a raft of changes to government policies.

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