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The United States has a final rule restricting certain Chinese- and Russian-linked connected-vehicle technology—but it is not a ban on every car part made in either country. The Commerce Department’s Bureau of Industry and Security (BIS) rule targets specified connectivity and automated-driving hardware and software in passenger vehicles, with different start dates for software and hardware.
What does the rule restrict?
BIS regulates certain transactions involving Vehicle Connectivity System (VCS) hardware and covered software, as well as software integrated into Automated Driving Systems (ADS). The restrictions apply when the technology is designed, developed, manufactured, or supplied by a person owned by, controlled by, or subject to the jurisdiction or direction of China (the People’s Republic of China, or PRC) or Russia.
Connected-vehicle systems
VCS includes telematics control units and modules that use Bluetooth, cellular, satellite, or Wi-Fi communications. These systems provide connectivity between a vehicle and external networks or devices.
Automated-driving software
ADS software means software components that collectively enable a highly autonomous vehicle to operate without a driver. The rule’s software restrictions cover specified software in these systems; it is not a general prohibition on all vehicle software associated with China or Russia.
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Is the U.S. banning all Chinese or Russian car parts?
No. The BIS measure is focused on covered connected-vehicle and automated-driving technology with the required foreign nexus. It does not amount to a blanket ban on mechanical parts—or on every electrical component—made in China or Russia. A part’s country of manufacture alone does not describe the full test: the rule also concerns the technology involved and the relevant person’s ownership, control, jurisdiction, or direction.
When do the restrictions take effect?
The final rule took effect on March 17, 2025. Its phase-in dates depend on the type of restriction and, for vehicle restrictions, the model year.
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| Restriction | Start date |
|---|---|
| Covered software | Model Year 2027 |
| Covered hardware | Model Year 2030, or January 1, 2029, for units without a model year |
| Vehicle sales by manufacturers with a sufficient PRC or Russia nexus | Model Year 2027, including vehicles manufactured in the United States |
These are the rule’s stated phase-in dates, not a single start date for every covered transaction. Model year matters: a vehicle assembled in the United States is not automatically outside the rule if its manufacturer has the specified China or Russia nexus.
Does the rule cover cars assembled in the United States?
Yes, in some circumstances. The rule includes a sales prohibition beginning with Model Year 2027 for manufacturers with a sufficient PRC or Russia nexus, even when the vehicle is made in the United States. Separately, the technology restrictions turn on covered hardware or software and the relevant foreign nexus. U.S. assembly alone therefore does not settle whether a vehicle or transaction is covered.
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Are trucks and buses included?
The initial BIS rule applies to passenger vehicles weighing less than 10,001 pounds. BIS said it planned separate rulemaking for connected commercial vehicles, including trucks and buses. The initial passenger-vehicle rule should not be read as already applying the same requirements to those commercial vehicles.
Why did the government act?
The Commerce Department described the concern as national-security and privacy risk. Its theory is that privileged access through connected-vehicle components could allow a foreign adversary to obtain sensitive data or remotely access and manipulate vehicles. Then-Commerce Secretary Gina Raimondo summarized the concern this way: “Cars today aren’t just steel on wheels – they’re computers. They have cameras, microphones, GPS tracking, and other technologies that are connected to the internet.”
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How is this different from the separate automobile-parts action?
In April 2025, the White House issued a separate action under Section 232 concerning automobile and automobile-part imports, citing national-security and domestic-production objectives. That is distinct from BIS’s connected-vehicle rule: the legal authority and scope differ. The BIS measure described here focuses on specified connected-vehicle and automated-driving technology; it should not be used as shorthand for the separate, broader automobile-parts trade action.
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Certain importers and manufacturers must submit annual Declarations of Conformity. BIS can also issue general authorizations for lower-risk transactions, specific authorizations for otherwise prohibited transactions, and advisory opinions on whether a prospective transaction falls within the rule. These mechanisms do not turn the restrictions into a blanket ban or mean every transaction qualifies; the applicable authorization depends on the circumstances.
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Is a separate proposed bill already law?
A reported Senate bill, S. 4429, described proposed restrictions on certain connected vehicles, covered software, and connectivity hardware tied to foreign entities of concern. Its provisions were described as applying from January 1, 2027, with testing and evaluation exceptions. That proposal is separate from the final BIS rule, and the information available here does not establish its present legislative status. It should not be treated as law on that basis.
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