Biden Administration's Final Rule on Connected Vehicles and Robotaxi Testing
Jan 15, 2025
Joe Biden Finalizes New Regulations to Ban Nearly All Chinese Cars in the U.S. Market
Jakarta - President Joe Biden is finalizing new regulations aimed at banning nearly all cars and trucks from China in the United States (U.S.) market. This policy is part of an effort to restrict the use of Chinese-made vehicle software and hardware.
According to CNBC International, this latest move comes after the U.S. Department of Commerce noted it is considering similar policies towards Chinese-made drones. This follows a significant increase in tariffs on Chinese electric vehicle imports last year.
“This is very important because we do not want two million Chinese cars on the road, realizing that we are facing a threat,” said Secretary of Commerce Gina Raimondo.
In September 2024, the Department of Commerce proposed a comprehensive ban on major Chinese-made software and hardware in vehicles on U.S. roads.
The software ban is set to take effect in 2027, while the hardware restrictions will begin in 2029. Additionally, Chinese automotive companies are prohibited from testing self-driving vehicles on U.S. roads. The regulations also encompass vehicles and components made in Russia.
In its final regulations, the Department of Commerce indicated that there would be some exceptions. For instance, vehicles weighing over 10,000 pounds will not be affected by these rules, allowing BYD, a Chinese company, to continue assembling electric buses in California.
On Monday (January 13, 2025), the U.S. Department of Commerce also announced plans to promptly propose rules banning Chinese software and hardware in larger commercial vehicles, including trucks and buses.
The final decision regarding these regulations will be handed over to the incoming administration of President-elect Donald Trump, who will assume office on January 20.
According to an official statement, the ban will not apply to Chinese software developed prior to the new regulations becoming effective, provided it is not maintained by a Chinese company.
This opens up opportunities for companies like General Motors (GM) and Ford to continue importing some Chinese-made vehicles into the U.S.
The Automotive Innovation Alliance, representing GM, Toyota, Volkswagen, Hyundai, and other large manufacturers, had previously requested an additional year to comply with hardware requirements, but this request was denied.
Meanwhile, Polestar, a Swedish car manufacturer that is part of the Chinese company Geely, warned in October that these new rules would effectively prohibit them from selling vehicles in the U.S.
A government official mentioned that Polestar may have to seek special permission under the final regulations, although the company declined to provide further comment.
In September, the Biden administration also completed an increase in high tariffs on Chinese electric vehicle imports. This month, they added CATL, a major Chinese battery manufacturer, to the list of companies accused of supporting the Chinese military.
President-elect Donald Trump has expressed a desire to prevent Chinese car imports but has shown openness to Chinese manufacturers wishing to produce vehicles in the U.S.