“How Chinese is your car?” asks the Wall Street Journal . “Automakers are struggling to figure it out.”
Modern cars are full of internet-connected widgets, many of which contain Chinese technology. Now, the auto industry is scrambling to weed out that technology before a looming deadline, a test of America's ability to disconnect from Chinese supply chains.
New US laws will soon ban Chinese software in cloud-connected vehicle systems, part of an effort to prevent foreign powers from exploiting cameras, microphones and GPS tracking in cars.
The move is “one of the most complex automotive regulations in decades,” according to Hilary Cain, chief policy officer at the trade group Alliance for Automotive Innovation. “It requires an in-depth examination of supply chains and strict compliance timelines.”
Automakers will have to certify to the US government that, as of March 17, key components of their products do not contain code written in China or by a Chinese company.
The law also covers software for advanced autonomous driving and will be expanded to connectivity hardware from 2029. Connected cars made by Chinese or Chinese-controlled companies are also banned, regardless of where their software comes from…
The Commerce Department's Bureau of Industry and Security, which introduced the new nomenclature for connected vehicles, also allows the use of Chinese code transferred to a non-Chinese entity before March 17.
That exception has sparked a corporate restructuring, according to Matt Wyckhouse, CEO of cybersecurity firm Finite State. Global vendors are relocating software teams based in China, while Chinese companies are looking for new owners for operations in the West.
Although the press releases will range from very select to rare, I said I'd pass...because sometimes the editors hide.
