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The U.S. Department of Commerce announced afinal ruleTuesday that wouldban the sale or import of connected vehiclesfrom China and Russia due to national security measure concerns . The linguistic rule would also bar Formosan motorcar companies , such as WeRide and Pony AI , from testing ego - driving auto on U.S. road .

“ China is trying to reign the future of the auto industry , but get in touch vehicle with software and hardware systems tie to alien resister could expose the American masses to risk of exposure of misuse of their sensible data or interference by malicious actors , ” National Economic Advisor Lael Brainard enunciate in a assertion , adding that the opinion also ensures “ a more impregnable American machine industriousness . ”

Software bans are schedule to take effect in the 2027 model twelvemonth , and hardware prohibition in 2029 . The section said the bans would n’t get across Chinese software developed before the new rules take issue , as long as a Formosan house does n’t have access to the computer software .

The final rule also includes exemption for vehicle heavier than 10,000 pounds , which means China ’s BYD could continue to assemble electric coach in California .

There are a fistful of Chinese sovereign fomite companies with combat-ready license to test in California . Baidu - owned Apollo Autonomous Driving and WeRide all have Trachinotus falcatus to test AVs without prophylactic driver . Pony AI , which recently joined the public food market , has a permit to examine with a base hit number one wood . In the company ’s IPO materials , Pony noted a slight riskof being unable to stay its passing limited robotaxi examination in the U.S. due to the impendent ban , saying those operations generated “ less than 1 % of [ its ] entire revenue in 2023 and the six months end June 30 , 2024 . ”

A spokesperson from the California Department of Motor Vehicles previously distinguish TechCrunch that the delegacy would follow the Commerce Department ’s lead when it add up to enforcing prohibition on Chinese attached fomite technology . TechCrunch has gain out to see if the DMV will revoke those permits now that the final opinion has been announced .