The U.S. Department of Commerce has issued a final rule prohibiting certain transactions involving connected vehicles with ties to China or Russia. This rule targets hardware and software within Vehicle Connectivity Systems (VCS) and Automated Driving Systems (ADS) that pose national security risks, such as potential data extraction and remote manipulation. The restrictions, which will be phased in starting with Model Year 2027 and fully implemented by Model Year 2030, aim to protect sensitive information and secure the U.S. automotive supply chain.
The rule focuses on passenger vehicles initially, with plans for future regulations on commercial vehicles. It prohibits the import and sale of vehicles containing VCS hardware or software, and ADS software, if they have a sufficient nexus to China or Russia. Manufacturers with such ties are also barred from selling new connected vehicles in the U.S., even if domestically produced. The Commerce Department will require annual Declarations of Conformity and may issue General or Specific Authorizations for certain transactions. This action follows extensive public input and is implemented under Executive Order 13873 to safeguard U.S. national security.