"Bombshell for manufacturers"

USA also bans China software in European cars

The European automotive industry fears economic difficulties due to the restrictive policies of US President-elect Donald Trump. Keyword: tariffs. But the outgoing Biden administration is also causing European companies to frown - with a ban on Chinese software in cars.

"This is not a bombshell for the OEMs (car manufacturers, note), but also for the suppliers," Automobilwoche quotes specialist lawyer Daniel Wuhrmann, who specializes in product law and supply chains. "The vast majority of automotive suppliers in Europe are likely to be affected," Wuhrmann assumes. The industry is "naturally worried".

With the regulation, the US administration is targeting critical technology in the areas of communication, network technology, data protection and road safety, according to the industry journal. "It concerns all hardware and software in the field of networked communication and autonomous driving functions that are connected to China or Russia in a relevant way. And this also affects numerous products and components that European companies manufacture or develop in China or with Chinese partners."

The de facto import ban on corresponding software is to come into force for cars from model year 2027 (from January 1, 2026). For vehicle hardware, the import ban is to apply from model year 2030 (from January 1, 2029).

The sale of new vehicles and vehicle components with a "sufficient connection" to China or Russia will then be prohibited.

"The Biden government is deliberately leaving the definition of this connection to China or Russia vague in order to keep all options open for bans and their implementation," says lawyer Wuhrmann.

Accordingly, a ban could be imposed if a joint venture in China is majority-owned or significantly owned by a Chinese partner.