US set to block Chinese software from smart and connected cars

US automakers are auditing software stacks and supply chains to find Chinese code embedded deep within the systems

By The News Digital
|
February 08, 2026

US car manufacturers are rushing to remove installed Chinese software from connected vehicles before March 17, as Washington tightens rules over national security risks.

The decision states that modern vehicles are no longer just machines. They are rolling computers, connected to the cloud, drivers’ smartphones, and sometimes even other vehicles and road infrastructure.

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These internet-connected car systems use cameras, microphones, GPS and sensors to improve convenience and safety. However, US officials now fear such data could be accessed or misused by foreign adversaries.

Why US is banning Chinese vehicle software?

This new rule has been introduced by the Commerce Department’s Bureau of Industry and Security of the US. This rule prohibits the use of software developed by China in the connected vehicle system, which could create security issues. During the process, the automobile companies have to ensure that the critical software of their vehicle has not been developed by China or Chinese companies.

However, one thing that is exempted is that the Chinese software that was transferred to a non-Chinese entity before March 17 is allowed for use, for which proper documentation must be clear.

According to the reports, US automakers are auditing software stacks and supply chains to find Chinese code embedded deep within the systems. This includes infotainment systems, telematics software, and connectivity solutions that may be sourced from third-party vendors.

The Bureau of Industry and Security has highlighted that in near future similar restrictions may apply to other products, such as commercial vehicles and drones.

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