Beijing, 26 August 2024 (TDI): The United States government plans to impose new limitations on the use of software manufactured in China in autonomous vehicles, a move that could further disrupt China-US relations and potentially limit technical growth.
Concerns about the impact on consumer interests and economic relations have been raised by the latest move, which is a part of a larger pattern of increased scrutiny and constraints placed on Chinese tech companies operating in the US.
The US Department of Commerce is expected to publish regulations in the upcoming weeks that will outlaw the use of software created in China in connected and autonomous vehicles.
Chinese automakers will be effectively banned from testing their autonomous vehicles on US roads by the action, which is anticipated to target vehicles with Level 3 automation and higher.
The plan may also aim to restrict the use of advanced wireless communication modules made in China in automobiles that are registered in the US. It would create more tension between China-US relations.
“We are concerned about the national security risks related to connected technologies in connected vehicles,” a spokesperson for the US Commerce Department stated.
Experts have criticized the expected action by US President Joe Biden’s administration, claiming that it puts “national security” concerns ahead of consumer interests and technical advancement.
Zhu Zhiqun, a political science and international affairs professor at Bucknell University in Lewisburg, Pennsylvania, said, “That’s a bad thing. It’s another example of ‘national security’ considerations trumping consumer rights, while further damaging economic connections between the two countries.”
Due to the rise of China in critical technologies like lidar, or light detection and range, the impending prohibition would have a severe detrimental effect on the global autonomous car market, according to analysts.
Recent months have seen an increase in criticism of Hesai Technology, a lidar company headquartered in Shanghai with an office in Palo Alto, California. It was included earlier this year in the list of “Chinese military companies” maintained by the US Defense Department.
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With no proof of any link to the Chinese military, Hesai filed a lawsuit against the Pentagon. The event underscores the vulnerable position of Chinese IT companies doing business in the US, even though the company was later taken off the list.
Hesai is mostly a hardware company and does not produce software or manage data storage and transmission, so it is unlikely to suffer the most from the impending software ban, a spokeswoman for the company stated.
Certain Chinese companies are gaining traction in the US market, even as the US is thinking about outlawing cars with equipment manufactured in China.
The California Public Utilities Commission has granted WeRide, a Chinese autonomous tech startup, permission to test its self-driving cars with passengers in San Jose and the surrounding areas. The corporation is permitted to operate test vehicles with or without a driver for a period of three years.
WeRide stated that although “it is not a rule yet,” it is aware of the planned restrictions that would prohibit the use of software created in China in autonomous cars. However, the company chose not to comment.
One illustration of the difficulties Chinese tech businesses trying to expand their operations in the US face is the anticipated move by the Biden administration.
There is growing mistrust and resistance to several other Chinese companies’ aspirations to expand into the US, especially those in the electric vehicle sector.
A prominent instance concerned Gotion, a Chinese producer of electric vehicle batteries, whose proposed $2.4 billion Michigan plant has encountered considerable obstacles.
The Gotion project has been involved in controversy and legal problems, despite its promise to produce 2,350 jobs with competitive wages. The development plan has been put on hold due to local opposition and concerns expressed by US lawmakers.
Restrictions on Chinese investments in the US, according to Professor Zhu, would be harmful for China-US relations.
He said, “In order to raise their profile, open up new markets, and increase their level of competitiveness worldwide, many Chinese enterprises would like to expand outside.”
“If they make investments in the US, they will increase the variety of goods and services accessible to American consumers in addition to generating new jobs for the local communities.”
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According to him, the US cities and towns are losing out on the opportunity to work with seasoned Chinese construction businesses that may assist in updating their antiquated infrastructure because of alleged national security concerns.
There are increasing demands for a more balanced strategy as China-US tensions in the technology industry continue to rise.
Zhu continued by saying that both consumers and businesses benefit from high-tech competition. “To prevent political interference in regular economic activities, the two countries must develop some sort of convention on “national security.” “
