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The United States will introduce new regulations to restrict Chinese automotive software in August

2024-07-18

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(Text/Zhang Jiadong Editor/Gao Xin)

According to Reuters on July 16, a senior U.S. official said on the same day that the U.S. Department of Commerce plans to release proposed rules on connected cars next month and expects to impose restrictions on some software produced by China and other countries regarded as adversaries.

Alan Estevez, the U.S. Commerce Department's export control chief, told a forum in Colorado: "We are looking at some parts and software, not the entire car, but some of the key drive components that manage the software and manage the data in the car that have to be produced in (U.S.) allies."

Estevez also said, "There is a lot of software in a smart car. It can take a lot of pictures, it has a driving system, it can connect to your phone, it knows who you call, it knows where you go, it knows a lot about you."

In May this year, U.S. Commerce Secretary Gina Raimondo claimed that the Commerce Department plans to release proposed rules for Chinese-made cars this fall, and said that after the U.S. government launched a security risk investigation into Chinese auto imports in February, it might take "extreme action" to ban or restrict Chinese-made cars.

"If you have millions of cars on the road and the software doesn't work, then theoretically you can imagine the catastrophic consequences," Raimondo said at the time.

Some analysts believe that while China does produce some components such as cameras, microcontrollers and sensors for cars sold in the United States, it is very difficult to directly obtain data from these devices and software. These components are integrated into systems mainly manufactured by non-Chinese component suppliers such as Bosch and Harman.

But California's privacy regulator said in July it will examine the growing amount of data collected by smart cars.

At present, the United States has announced that it will significantly increase tariffs on Chinese electric vehicles and other goods starting on August 1, with tariffs on electric vehicles increasing from the current 25% to 100%.

In response, the Ministry of Foreign Affairs has previously urged the United States to "respect the laws of market economy and the principles of fair competition."

Foreign Ministry spokesperson Wang Wenbin stressed that the rapid development of China's new energy industry, including electric vehicles, lithium batteries and photovoltaic products, is based on continuous technological innovation, a sound production and supply chain system and full market competition. The leading position achieved is the result of the combined effect of comparative advantages and market laws.

China has always opened its doors to global auto companies, and American auto companies have been fully enjoying the dividends of the Chinese market. On the contrary, the United States has been engaged in trade protectionism and set up discriminatory subsidy policies and other obstacles, which have seriously hindered Chinese cars from entering the US market. This practice of politicizing economic and trade issues will only hinder the development of the US auto industry.

China urges the US to respect the laws of the market economy and the principle of fair competition, stop generalizing the concept of national security, stop discriminating against and suppressing Chinese companies, and effectively maintain an open, fair and non-discriminatory business environment.

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