The Biden administration’s final rule banning Chinese connected cars also prohibits testing of robotaxis on U.S. roads

The US Department of Commerce announced a Final rule Tuesday would Prohibiting the sale or import of connected vehicles From China and Russia due to national security concerns. The rule would also prevent Chinese auto companies, such as WeRide and Pony AI, from testing self-driving cars on American roads.

“China is trying to control the future of the auto industry, but vehicles connected to software and hardware systems linked to foreign adversaries could expose the American people to the risks of their sensitive data being misused or interfered with by malicious actors,” said Lael Brainard, National Economic Advisor. he said in a statement, adding that the ruling also ensures a “safer American auto industry.”

The software ban is scheduled to take effect in 2027, and the hardware ban in 2029. The ministry said the ban will not include Chinese software developed before the new rules take effect, as long as the Chinese company cannot access the software.

The final rule also includes exemptions for vehicles weighing more than 10,000 pounds, meaning Chinese company BYD can continue to assemble electric buses in California.

There are a few Chinese self-driving car companies that have active permits for testing in California. Baidu-owned Apollo Autonomous Driving and WeRide have permits to test self-driving vehicles without safe drivers. Pony AI, which recently joined the public markets, has clearance for testing with a safety driver. In the company’s IPO materials, Pony noticed a slight danger Unable to continue very limited robotaxi testing in the United States due to the looming ban, it said those operations generated “less than 1% of its total revenue in 2023 and the six months ending June 30, 2024.”

A California Department of Motor Vehicles spokesperson previously told TechCrunch that the agency will follow the Commerce Department’s lead when it comes to enforcing the ban on Chinese connected vehicle technology. TechCrunch reached out to see if the DMV will revoke these permits now that the final ruling has been announced.