US bans connected car parts from 'foreign adversaries' — starting with China

The US Commerce Department can now block transactions for connected vehicle parts if they come from companies tied to specific foreign governments. This means car manufacturers and suppliers must now vet their supply chains for components like sensors and software that could pose a national security risk.

For years, the US has worried about foreign governments embedding surveillance or disruption capabilities into critical infrastructure. This rule makes connected vehicles a part of that critical infrastructure. It means car companies can no longer buy certain components from specific countries without government review, forcing a shift in global supply chains. The rule specifically targets China, among others, and will likely accelerate the decoupling of technology supply chains.