Banning Chinese Software, Hardware In Connected Vehicles Sold In The U.S.

By John Oncea, Editor

Connected vehicles improve safety and the driving experience. However national security concerns have led to a proposed ban in key communications and automated driving system software or hardware from China and Russia.

Connected vehicles are expected to represent 95% of all new vehicles sold by 2030. According to Salesforce, each one of these vehicles will generate “an estimated 25 gigabytes of data per hour — as much data as it would take someone to stream 578 hours of music.”

Salesforce adds that a survey of over 2,000 U.S. car owners and lessors found drivers were generally willing to trade personal data for connected vehicle benefits including advanced personalization and cheaper insurance. This even though few respondents understood what a connected vehicle is.

Simply put, a connected vehicle is a vehicle that can communicate with other vehicles, the internet, and other devices, a technology is also known as smart car technology. Connected vehicles can use vehicle-to-everything (V2X) communications to:

• Improve safety: Connected vehicles can warn drivers of potential hazards, such as icy roads, red-light violations, or other vehicles in their lane.
• Improve efficiency: Connected vehicles can help with system efficiency and mobility.
• Improve the driving experience: Connected vehicles can offer a variety of benefits for drivers and passengers, such as:
  • Entertainment: Connected vehicles can stream media, such as music, movies, and gaming.
  • Breakdown prevention: Connected vehicles can predict breakdowns and intervene with a phone call, SMS, or push notification.
  • Vehicle health: Connected vehicles can provide vehicle health alerts and allow drivers to schedule service from their app.

Recent innovations in connected vehicle technology include data recorders, vehicle-to-cloud (V2C) connectivity, autonomous emergency breaking, lane departure warning, and driver monitor systems. All of these benefits and more are driven by software and hardware.

How Connected Vehicles Work

According to The White House, a connected vehicle operates by utilizing a combination of onboard sensors, a dedicated telematics unit, and communication networks to collect data on vehicle performance, location, and surroundings, which is then processed and transmitted to a cloud server, allowing for features like real-time traffic updates, remote vehicle diagnostics, and safety alerts.

The hardware, according to PTC, includes sensors like GPS, cameras, and accelerometers, while the software manages data collection, processing, and communication with external systems via cellular networks or Wi-Fi, enabling interaction with other vehicles and infrastructure (V2X) through dedicated protocols. 

Key components of a connected vehicle system include onboard sensors such as GPS (Global Positioning System), cameras, accelerometers, gyroscopes, and LiDAR. Then there is the telematics unit which includes a dedicated processing unit, cellular modem, and an optional Wi-Fi module.

Software components include data acquisition and processing, communication protocols, cloud-based analytics, and an application layer that provides a user interface and features like navigation, vehicle diagnostics, and safety warnings. 

Connected vehicles communicate in several different ways including:

• Vehicle-to-Vehicle (V2V): Cars directly exchange information with each other, enabling collision avoidance warnings 
• Vehicle-to-Infrastructure (V2I): Vehicles communicate with smart traffic lights and other infrastructure to receive real-time traffic updates and warnings 
• Vehicle-to-Network (V2N): Connects to the broader internet for accessing services like navigation, weather updates, and remote assistance 

When connected, these vehicles can enhance safety with real-time collision warnings and proactive safety measures, improve traffic efficiency via adaptive routing based on live traffic conditions, provide parking assistance, diagnose potential maintenance issues before they happen, and customize settings and information based on driver preferences.

Banning Chinese And Russian Software And Hardware

Citing national security concerns, the U.S. Department of Commerce has proposed regulations to prohibit the import and sale of connected vehicles that incorporate specific hardware and software linked to China and Russia, according to the Bureau of Industry and Security.

The proposed rule would ban Vehicle Connectivity System (VCS) software or hardware – systems enabling vehicles to connect to GPS, Bluetooth, cellular, satellite, and Wi-Fi – that are designed, manufactured, or supplied by entities under the jurisdiction of China or Russia.

The proposed timeline for implementation, according to Clark Hill, is as follows:

• Software Restrictions: Set to commence with the 2027 model year.
• Hardware Restrictions: Slated to begin with the 2030 model year.

The public comment period for these proposed rules concluded on October 26, 2024.

As of January 2025, the Department of Commerce is reviewing the feedback received during the comment period. A final decision on the implementation of these rules is anticipated later this year.

These measures are part of a broader strategy to mitigate potential national security risks associated with foreign technologies in critical infrastructure, according to The White House. The Biden administration has expressed concerns that connected vehicle technologies from certain foreign adversaries could be exploited for espionage or sabotage.

Reuters reports the proposed ban could prevent $1.5 billion to $2.3 billion worth of Chinese and Russian vehicle inputs from entering the U.S. It further notes the automotive industry and other stakeholders are closely monitoring the situation, as the final decision will have significant implications for supply chains, vehicle manufacturing, and international trade relations.