Biden admin’s final rule banning Chinese connected cars also bars robotaxi testing on U.S. roads

The U.S. Department of Commerce announced a final rule Tuesday that would ban the sale or import of connected vehicles from China and Russia due to national security concerns. The rule would also bar Chinese car companies, such as WeRide and Pony AI, from testing self-driving cars on U.S. 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 risks of misuse of their sensitive data or interference by malicious actors,” National Economic Advisor Lael Brainard said in a statement, adding that the ruling also ensures “a more secure American auto industry.”

Software bans are scheduled to take effect in the 2027 model year, and hardware prohibitions in 2029. The department said the bans wouldn’t cover Chinese software developed before the new rules take effect, as long as a Chinese firm doesn’t have access to the software. 

The final rule also includes exemptions for vehicles heavier than 10,000 pounds, which means 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-owned Apollo Autonomous Driving and WeRide all have permits to test AVs without safety drivers. Pony AI, which recently joined the public markets, has a permit to test with a safety driver. In the company’s IPO materials, Pony noted a slight risk of being unable to continue its extremely limited robotaxi testing in the U.S. due to the imminent ban, saying those operations generated “less than 1% of [its] total revenues in 2023 and the six months ended June 30, 2024.”

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