US Automakers to Ban Chinese Software After March 17

Modern vehicles are increasingly loaded with internet-connected features, from real-time navigation and remote diagnostics to voice-activated controls, onboard cameras, microphones, and advanced driver-assistance systems.

Many of these capabilities rely on software developed in China or by Chinese companies.Now, U.S. automakers and suppliers are scrambling to identify and eliminate such code from their systems as a major national-security regulation looms.

A new rule from the U.S. Department of Commerce’s Bureau of Industry and Security (BIS) prohibits the use of Chinese-developed software in key connected-vehicle systems starting March 17.

Carmakers must certify to the government that critical components, including cloud-connected telematics, GPS tracking, microphones, cameras, and autonomous-driving software, contain no code written in China or created by Chinese firms.

The regulation, which took effect in March 2025 but imposes its core software restrictions imminently, aims to block potential national-security risks.

Officials worry that foreign adversaries could exploit these always-on systems to collect sensitive data or gain unauthorized access to vehicles on American roads.Industry leaders describe the requirement as one of the most sweeping and technically demanding regulations to hit the auto sector in decades.

Suppliers and manufacturers are conducting exhaustive audits of their codebases, while some are relocating development teams or transferring ownership of software assets to non-Chinese entities before the cutoff to take advantage of a narrow compliance window.

Hardware-related restrictions will follow later, with connectivity components facing similar bans beginning in 2029.

The BIS rule also bars the sale of connected vehicles from manufacturers owned, controlled by, or subject to the direction of China (or Russia), regardless of where the vehicles are assembled.Experts view the measure as a high-stakes test of America’s broader effort to reduce dependence on Chinese technology in strategic supply chains, a push that could eventually extend to commercial trucks, drones, and other sectors.

With the deadline just weeks away, the race to re-engineer vehicle software highlights the growing tension between globalized automotive production and rising geopolitical concerns over data security and foreign influence.

Signpost NewsDesk

Signpost News is an Imphal-based media house that focuses on delivering news and views from Northeast India and beyond.