WASHINGTON — The US has finalized a rule that bans Chinese and Russian technology from passenger vehicles sold in the American market, citing national security risks. The rule, which targets software and hardware for connected and autonomous vehicles, will take effect for model year 2027. Hardware restrictions are set for 2030.

Commerce Secretary Gina Raimondo emphasized that modern cars are essentially "computers on wheels" and said the rule was designed to keep technologies from adversaries off US roads. The move is part of broader US efforts to curb China’s influence in the auto industry and prevent misuse of sensitive data.

The restriction applies to vehicles with ties to China or Russia, even if they are US-made. This follows the announcement of tighter controls on AI chips and technology exports to China, as the US intensifies its push to maintain dominance in emerging technologies.

President Biden also issued an executive order to accelerate AI infrastructure development in the US, while warning against allowing China to surpass the US in AI. China has condemned the new export curbs and threatened retaliation.