US Commerce Secretary: "Regulations on Chinese 'Connected Cars' to be Announced This Fall"

On the 15th (local time), the U.S. government announced plans to release regulations related to Chinese-made connected vehicles this fall, amid national security concerns over the leakage of information of American citizens.

According to major foreign media on the day, Gina Raimondo, U.S. Secretary of Commerce, appeared before the Senate Appropriations Committee subcommittee and said, "The risk to national security is a very important and serious matter."

[Image source=Yonhap News]

Secretary Raimondo stated, "Connected vehicles have numerous sensors and chips, and in the case of Chinese-made vehicles, they are controlled by software produced in China," adding, "A lot of data about Americans, such as where the driver is going, driving patterns, and what is said inside the car, can be directly transmitted to China."

Connected vehicles are vehicles connected to wireless networks that communicate in real time and provide functions such as autonomous driving and driver assistance systems. Vehicles equipped with navigation or wireless software are also included.

Secretary Raimondo referred to the recently passed TikTok forced sale bill, saying, "It is no different from the threat posed by TikTok, which Congress has taken action against," and added, "There are millions of cars on the road, and if the software is disabled, one can theoretically imagine fatal consequences."

Secretary Raimondo also revealed in a recent foreign media interview that extreme measures, including a ban on imports of Chinese-made connected vehicles, are being considered.

Earlier, U.S. President Joe Biden ordered the Department of Commerce to investigate in February, citing risks of vehicle hacking or data leakage if connected vehicles use technology from China or other countries of concern.

If the U.S. regulates the use of Chinese technology in connected vehicles sold domestically, it is expected to impact the Korean automotive industry as well.

On the 30th of last month, the Korean government submitted a statement of opinion to the U.S. Department of Commerce, expressing concerns that "the Korean automotive industry is worried that the broad scope of the connected vehicle supply chain investigation, the range of potential regulatory targets, and the timing of enforcement could all place a significant burden on the industry."

Furthermore, the Korean government requested that the U.S. government, during the upcoming investigation and rulemaking process, ▲ provide a detailed definition of connected vehicles, ▲ focus the investigation and follow-up actions on parts and services that pose a 'significant risk to national security,' and ▲ allow sufficient time for the industry to inspect and reorganize the supply chain before new regulations are implemented.