The United States has announced a comprehensive ban on the use of Chinese and Russian technologies in the automotive sector, effective from 2027 for software and 2030 for hardware.

This policy will affect all new vehicles introduced in the U.S. market under 4.5 tonnes, including passenger cars and light commercial vehicles.

The move is part of a broader national security strategy to mitigate the risk of data breaches and cyber threats.

An official statement clarifies that the regulations will prohibit the use of any Chinese or Russian-origin technology in vehicles, encompassing both software—such as those used in vehicle connectivity and automated driving systems—and hardware components like cameras, microphones, and GPS units.

This rule extends to American-made automobiles if they incorporate foreign technologies from the banned countries.

U.S. Commerce Secretary Gina Raimondo highlighted that modern vehicles are sophisticated computing systems with access to sensitive data, necessitating robust security measures.

Chinese authorities have reacted strongly, with Foreign Ministry spokesperson Kuo Jia-kun criticizing the U.S. for failing to substantiate its national security allegations.

Beijing describes the ban as unwarranted economic protectionism and a form of political coercion, urging the U.S. to cease suppressive actions against Chinese companies and restore normal trading conditions.

It also signaled potential retaliatory actions to defend legitimate economic interests.

Among the affected Chinese manufacturers is BYD, which operates a facility in California that currently focuses on bus and larger vehicle production, although this might be impacted by possible future expansions of the ban to other vehicle categories.

The directive will have significant implications for American automotive giants like General Motors, Ford, and Tesla, who have traditionally relied on more affordable Asian technology solutions.

These companies will need to find alternative sources, possibly from domestic, Taiwanese, or European suppliers.

In the geopolitical context, Lael Brainard, head of the U.S. National Economic Council, underscored concerns over China's ambition for global dominance in the automotive industry, framing it as a substantial threat to American economic interests.

The phased implementation gives the industry some breathing room, with software restrictions starting with the 2027 model year and hardware prohibitions in 2030, providing manufacturers time to adjust.

The development underscores ongoing U.S.-China technological tensions, marking a critical juncture in global trade relations.