First TikTok, now smart cars: How Biden’s new proposed ban will affect US automakers

The report outlines a U.S. Department of Commerce proposal to ban Chinese smart cars and related software/hardware over national security risks, giving automakers one year to remove Chinese software and four years to replace certain hardware, while allowing limited exemptions and imposing software-focused restrictions on Level 3–4 AVs. It notes implications for Chinese AV testing in the U.S., potential supply chain disruptions, alignment with prior actions (e.g., Huawei/ZTE restrictions, TikTok-related measures, and 100% EV tariffs), and possible boosts to domestic EV production via the Inflation Reduction Act. A final rule is expected by year-end following stakeholder input.