The US Department of Commerce announced. Final rule Tuesday Prohibition of sale or importation of related vehicles. from China and Russia due to national security concerns. The rule would prevent Chinese car companies like WeRide and Pony AI from testing self-driving cars on American roads.
“While China seeks to dominate the future of the auto industry, connected vehicles with software and hardware systems linked to foreign adversaries could expose Americans to the risk of their sensitive data being misused or intercepted by malicious actors,” National Economic Adviser Lael Brainard said in a statement, adding that the ruling also ensured a “safer American auto industry.”
Software bans are scheduled to go into effect in 2027 and hardware bans in 2029. The bans will not apply to Chinese software developed before the new rules take effect, the department said. Software.
The final rule also includes an exemption for vehicles weighing more than 10,000 pounds; That means China's BYD can continue to assemble electric buses in California.
There are a handful of Chinese autonomous car companies with active permits to test in California. Baidu-owned Apollo Autonomous Driving and WeRide all have permission to test AVs without safe drivers. Pony AI recently entered the public market and has a permit to test with a safe driver. Company's IPO materials; Pony noted that it was a little dangerous. Unable to continue its very limited robotics testing in the U.S. due to an imminent ban, those businesses “generated less than 1% of its total revenue in 2023 and the six months ended June 30, 2024.”
A spokesperson for the California Department of Motor Vehicles previously told TechCrunch that the agency will follow the Commerce Department's lead when enforcing bans on Chinese connected vehicle technology. TechCrunch is ready to learn if the permits will be revoked now that the DMV has announced the final ruling.