Admin Biden’s final rule banning Chinese connected cars also prevents testing of robotaxis on US roads

The US Department of Commerce announced a final rule Tuesday that would be prohibit the sale or importation of connected vehicles from China and Russia due to national security concerns. The rule will also prevent Chinese car companies such as WeRide and Pony AI from testing self-driving cars on US roads.

“China is trying to dominate the future of the auto industry, but connected vehicles with software and hardware systems linked to foreign adversaries could expose the American people to the risks of misuse of their sensitive data or interference by malicious actors,” National Economic Council Lael Brainard. he said in a statement, adding that the decision also ensures “a safer American auto industry.”

The software bans are expected to take effect in the 2027 model year, and the hardware bans in 2029. The department said the bans will not cover Chinese software developed before the new rules take effect, however that a Chinese firm does not have access to the software.

The final rule also includes exemptions for vehicles heavier than 10,000 pounds, meaning China’s BYD could continue to assemble electric buses in California.

There are a handful of Chinese autonomous vehicle companies with active permits to test in California. Baidu’s Apollo Autonomous Driving and WeRide are both licensed to test AVs without safety drivers. Pony AI, which recently joined the public markets, has permission to test with a security driver. In the company’s IPO materials, Pony noticed a little risk of being unable to continue its extremely limited robotaxi testing in the United States due to the impending ban, saying that these operations generated “less than 1% of (its) total revenue in 2023 and the six months ended 30 of June 2024”.

A spokesperson for the California Department of Motor Vehicles previously told TechCrunch that the agency will follow the Commerce Department’s lead when it comes to enforcing bans on Chinese connected vehicle technology. TechCrunch reached out to find out if the DMV will revoke those permits now that the final decision has been announced.