Continuing Series of National Security Actions, White House Announces Review of Connected Vehicles – Teeing Up Potential Action Against Chinese Car Imports

On February 29, 2024, US President Joe Biden announced that his administration will investigate the national security risks posed by “connected vehicles from countries of concern.” The president’s statement underscores the key role that advanced technologies and data play in today’s cars and other vehicles, and the national security risks presented therein.

The administration is particularly concerned about the amount of sensitive data that can be collected on drivers, passengers and US infrastructure by connected cars through cameras, sensors, personal cell phones and other connected car data systems that could be used for espionage, remote control of the vehicle, and other exploitative actions. As part of the president’s announcement, the US Department of Commerce (Commerce) initiated a rulemaking to investigate whether it should issue regulations on transactions involving connected vehicles and information and communications technology and services (ICTS) – notably, the first action taken by the administration under Executive Order (EO) 13873, “Securing the Information and Communications Technology and Services Supply Chain.” New regulations and restrictions could have broad implications for joint ventures and cross-border investments, fleet tracking, digital management systems and countless other aspects of automotive manufacturing and operation in the 21st century.