Auto sector manufacturers and importers will have 425 days to cut from their supply chains Chinese software that enables automated driving systems or enables a vehicle to connect to the outside world at a frequency above 450 MHz, according to a final rule from the Bureau of Industry and Security set for Thursday's Federal Register and effective March 17. The agency issued a proposed rule in September (see 2409220001). Chinese hardware that enables out-of-car communication above 450 MHz will be banned beginning in the 2029 model year, or, for items that aren't associated with a model year, before Jan. 1, 2029. The final rule adds that later imports that would otherwise be banned, that are to repair completed connected vehicles model year 2029 or earlier, will also be allowed. Examples of these sorts of hardware are telematics control units, cellular modems and antennas that collect data from GPS, accelerometers, gyroscopes, BMS and other units. The agency said the list of parts is not exhaustive but clarified the rule to say the hardware must "directly enable" the connected capabilities. Companies from adversary countries cannot design or manufacture these systems because the administration says they could imperil infrastructure and "enable mass collection of sensitive information, including geolocation data, audio and video recordings, and other pattern-of-life analysis."
A senior research analyst from Georgetown University's Center for Security and Emerging Technology cautioned Thursday that in some locations the cost of replacing Chinese hardware in information technology networks with more expensive alternatives outweighs the benefits. Jack Corrigan told the China Economic and Security Review Commission at a Thursday hearing that procurement bans should be targeted at "high-risk sectors, networks and use cases."