The US Commerce Department is set to propose banning Chinese software in autonomous and connected vehicles in the coming weeks, Reuters reported, citing sources briefed on the matter. 

The US government is reportedly planning to ban all Chinese software in vehicles with Level 3 automation and above.

A rule will be proposed by the US Bureau of Industry and Security that “will focus on specific systems of concern within the vehicle.”

The “industry will also have a chance to review that proposed rule and submit comments,” the sources said.

A spokesperson for the Chinese Embassy in Washington said that China “urges the US to earnestly abide by market principles and international trade rules, and create a level playing field for companies from all countries”.

“China will firmly defend its lawful rights and interests,” it added.

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In November 2023, a group of US lawmakers raised concerns about the risks of Chinese companies collecting and sensitive data while testing autonomous vehicles in the US.

This followed Transportation Secretary Pete Buttigieg stating, in July, that the department had national security concerns about Chinese autonomous vehicle companies operating in the country.

In May, Commerce Secretary Gina Raimondo said that the “national security risks are quite significant.”

“We decided to take action because this is really serious stuff,” she added.

Research and analysis company GlobalData said that it is likely that Level 3 autonomous vehicles will be deployed in the middle of the decade. 

The key difference between level 3 and 4 autonomy is that level 4 self driving cars can intervene if there is a system failure or things go wrong – not needing any human interaction in most circumstances.

“Companies that have made big bets on the technology will continue to move toward commercialisation, but it could be closer to 2035 before we begin to see any meaningful deployments of fully self-driving vehicles,” GlobalData said.