The US is reportedly preparing to impose a ban on vehicle technology that raises cybersecurity concerns. While this move may not immediately impact automakers, it could further widen the technological divide between the US and China, potentially affecting foreign automakers operating in both countries.
According to Bloomberg, the US is considering a new regulation that would ban the use of Chinese software in Level 3 (L3) and above autonomous vehicles and connected cars. This move, which has garnered support from allies, aims to address national security concerns related to the potential for foreign governments to access sensitive data through these vehicles.
Under this proposed rule, automakers and suppliers would be required to verify that the software used in their connected and autonomous vehicles was not developed by entities deemed to be national security threats, such as those based in China. The rumored restrictions are expected to deepen the technological rift between the US and China in the automotive industry.
Industry insiders believe that automotive suppliers have been preparing to adapt to the rumored regulations. Additionally, with L3 and higher autonomous technologies not yet widely available, the immediate impact is expected to be limited.
Automakers are increasingly forming alliances to advance automotive software development. Volkswagen has partnered with Horizon Robotics and Xpeng in China and collaborated with Bosch and Mobileye in Europe. Volkswagen's recent acquisition of Rivian is also widely viewed as a strategic move to strengthen its software development capabilities.
Despite not having official government approval for L3 autonomous driving, many automakers possess the capabilities to enable higher levels of autonomous driving, as vehicles can be upgraded through over-the-air (OTA) updates to support more advanced self-driving features.
In recent years, China has actively promoted the development of vehicle technology, gradually easing restrictions in this area. Mercedes-Benz has become the first foreign automaker to receive approval for L4 autonomous driving pilot tests on urban and expressway roads in Beijing. Additionally, Tesla's Model Y has been added to Jiangsu province's procurement list for new energy vehicles, marking a significant milestone for foreign electric vehicle manufacturers in China.
With the US and its allies tightening regulations on connected vehicle software, there is increasing concern about the potential impact on companies like Tesla operating in China. Given the sensitivity of Tesla's autonomous driving technology, the company could become a target of heightened scrutiny by Chinese authorities.
