The US Commerce Department is set to propose a ban on Chinese software and hardware in connected and autonomous vehicles due to national security concerns, according to sources cited by Reuters.

The proposed regulation, which is expected on Monday, would prohibit the import and sale of Chinese-made vehicles equipped with key communication systems or automated driving technology in the US.

The Biden administration has raised alarms over the potential risks posed by Chinese companies collecting sensitive data on US drivers and infrastructure and the possible foreign manipulation of internet-connected vehicles and navigation systems. The regulation would be significant in US restrictions on Chinese automotive technologies.

Commerce Secretary Gina Raimondo emphasized the dangers in May, suggesting that millions of vehicles could be compromised if Chinese software were disabled. President Joe Biden echoed these concerns earlier this year, calling for an investigation into Chinese vehicle imports, citing their possible threat to US national security.

The Commerce Department plans to solicit public comments for 30 days before finalizing the rules. If approved, the software ban would take effect in 2027, while hardware prohibitions could start in January 2029 or the 2030 model year. The restrictions would target vehicles with features such as Bluetooth, satellite, wireless technologies, and highly autonomous systems.

The proposal comes as US lawmakers express growing unease about Chinese companies collecting data from autonomous vehicles tested on American roads. The ban would also extend to adversaries like Russia.

Due to the lengthy engineering and validation processes, automakers have warned that adjusting hardware and software could be challenging.

The Commerce Department has declined to comment on the specifics of the plan.