Software Showdown: US Cracks Down on Chinese and Russian Tech with 2027 Ban

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The U.S. government has decided to phase out the sale of vehicles that use Chinese or Russian software components for autonomous driving or communications functions.

On the 23rd, local time, the U.S. Department of Commerce announced a regulation banning the import and sale of vehicles equipped with specific hardware or software for vehicle connectivity systems or autonomous driving systems.

The Department of Commerce explained that each system corresponds to an autonomous driving function that allows the vehicle to exchange information with the outside world via Bluetooth or Wi-Fi and operate the vehicle without a driver.

Accordingly, supply chain adjustments are likely to be inevitable for Korean companies selling cars in the U.S. that are currently using banned software or parts.

However, there are also observations that the U.S. government’s measures could have a windfall benefit in the long term, as they would block Chinese automakers, its competitors, from entering the U.S. market.

The Commerce Department has raised concerns that China and Russia could hack connected vehicles to steal sensitive personal information or remotely control the vehicles themselves.

The Commerce Department said the software would apply to models starting in 2027, and the hardware would apply to models starting in 2030, even if the vehicles are made in the United States.

The regulations apply to all motor vehicles, including passenger cars, trucks and buses, but do not apply to non-road vehicles such as agricultural machinery or mining vehicles.

The Department of Commerce will accept comments for 30 days before finalizing the rule.