07:09 AM EDT, 08/05/2024 (MT Newswires) -- The US Commerce Department is planning to propose banning Chinese software in American self-driving vehicles with Level 3 automation and above, Reuters reported Sunday, citing people briefed on the matter.

The Biden administration is also expected to propose prohibiting Chinese-developed advanced wireless communications abilities modules from driving on US roads, the report said.

Under the proposed rules, makers of connected vehicles or advanced autonomous vehicle software would have to verify that their products were not developed in a "foreign entity of concern" like China, according to the report.

The Commerce Department did not immediately respond to MT Newswires' request for comment.

Chinese EV stocks fell during Monday premarket activity, with Nio (NIO) dropping 6.9% and Xpeng ( XPEV ) down 4.6%.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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