Shortly before the change of power in the United States, President Joe Biden is spending one of his last working days banning all cars with technology from China, regardless of whether they are built in the United States.
The US enforces a ban on Chinese cars shortly before President Joe Biden leaves office.
The new rule could have serious consequences for car brands like Volvo and Polestar, which not only have close ties to China but are owned by the Chinese Geely group.
The United States bans the import and sale of cars that contain Chinese technology, regardless of whether the cars are manufactured in the United States or not.
The rule, signed by Joe Biden in the final days of his presidency, is based on national security concerns.
Bloomberg writes.
The United States claims that Chinese technology in internet-connected cars could give unauthorized parties access to sensitive data about both the vehicle and its users. Modern cars collect vast amounts of data, and the United States fears that this information could be misused if it falls into the wrong hands.
The ban does not only apply to cars manufactured in China, but also to cars manufactured in other countries if they contain Chinese-developed computer systems. This particularly affects Volvo and Polestar, both of which are owned by the Chinese company Geely and have a significant part of their development activities in China.
The new US rule applies specifically to cars' Bluetooth, cellular, satellite and Wi-Fi connections, as well as automated driving systems.
The ban will take effect from 2027. A special wording in the White House announcement emphasizes that the ban also applies to cars produced in the United States if they are owned or controlled by Chinese companies.
It is still unclear exactly what the new rule will mean, but it appears that cars that have already been developed and launched may be exempt as long as their software is not maintained by a Chinese company.
Polestar has previously expressed concerns that the new rules could effectively lead to a ban on its cars in the US. The company is working to adapt its cars to comply with the new rules. Volvo Cars is currently analyzing how the rules will affect them.
