The Biden administration has finalized regulations effectively banning the sale of connected vehicles from China and Russia in the United States.

On the 14th, the US Department of Commerce released its finalized regulations prohibiting the phased sale of vehicles equipped with Chinese or Russian software or components used in autonomous driving or communication systems.

The regulation specifically targets vehicles equipped with certain hardware or software linked to China or Russia in their Vehicle Connection Systems (VCS) or Autonomous Driving Systems (ADS). The department initially proposed these measures in a draft released in September last year.

The Department of Commerce clarified that for ADS, the regulations apply only to software, not hardware. ADS enables vehicles to operate autonomously without a driver. While some critics argued that hardware components such as LiDAR sensors should also be regulated, the department excluded hardware to mitigate the economic and supply chain impacts. However, it specified that even partial use of Chinese or Russian software code within ADS software would be subject to the regulation. Legacy software supplied before March 17, 2026, will be exempt from the rules.

Similarly, the definition of VCS excludes hardware components like LiDAR, cameras, satellite navigation systems (GNSS), and radio-related sensors from regulation.

The rules aim to prevent connected vehicles incorporating technology from adversarial nations like China and Russia from posing significant national security risks in the US. Consequently, vehicles designed, developed, manufactured, or supplied by individuals or entities owned, controlled, or directed by China or Russia are banned from being sold in the US.

Connected vehicles, often referred to as "smart cars," rely on wireless networks to exchange information with their surroundings, enabling functions such as navigation, autonomous driving, and driver assistance systems. Virtually all modern vehicles come equipped with some of these features. The regulation prohibits the sale of connected vehicles containing Chinese or Russian technology, even if they are manufactured in the United States.

The regulations will apply to software starting with the 2027 model year and to hardware beginning with the 2030 model year.

Initially, the rules cover vehicles weighing 10,000 pounds or less. However, the Department of Commerce indicated that it plans to extend the regulations to commercial vehicles exceeding 10,000 pounds in the future.