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US finalizes rule to effectively ban Chinese vehicles, which could include Polestar

Jan 14, 2025 - theverge.com
The Biden administration has finalized a rule that effectively bans Chinese vehicles from the U.S. by prohibiting the sale or import of connected vehicle software from countries deemed as concerns, such as China and Russia. This rule, set to impact model year 2027 vehicles for software and model year 2030 for hardware, aims to address national security concerns over foreign adversaries potentially exploiting vehicle technology to gather sensitive data. The rule affects a wide range of automakers, including major companies like Ford and GM, as well as smaller manufacturers like Polestar, and even non-car-producing companies like Waymo. It also bans China from testing self-driving cars on U.S. soil.

The rule exempts vehicles over 10,000 pounds, allowing companies like BYD to continue assembling electric buses in California. The auto industry, represented by the Alliance for Automotive Innovation, expressed concerns over the complexity of the global supply chain and potential disruptions. Polestar criticized the rule for potentially prohibiting its sales in the U.S., while Waymo, planning to use vehicles from Geely’s Zeekr, supported the rule but acknowledged possible impacts on its expansion plans. The rule is part of ongoing trade restrictions on Chinese-made vehicles and components, as the U.S. seeks to secure critical supply chains and protect national security.

Key takeaways:

  • The Biden administration has finalized a rule banning Chinese vehicles and connected vehicle software from "countries of concern," impacting automakers like Ford, GM, and Polestar, as well as companies like Waymo.
  • The rule targets technologies that connect vehicles to the outside world, such as Bluetooth, Wi-Fi, and cellular components, due to national security concerns over data collection by foreign adversaries.
  • The prohibition on software goes into effect for model year 2027 vehicles, while the hardware ban starts with model year 2030 vehicles, with exemptions for vehicles over 10,000 pounds.
  • The rule could disrupt the plans of companies like Polestar and Waymo, with the latter supporting the rule but reviewing its final version for potential impacts on its operations.
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