07:55 AM EDT, 09/23/2024 (MT Newswires) -- The US Commerce Department is expected on Monday to propose a ban on Chinese software and hardware in connected and autonomous vehicles due to national security concerns, Reuters reported, citing two unnamed sources.

The proposed regulation would prohibit the import and sale of vehicles from China with key communications or automated driving system software or hardware, the sources said, according to the report.

The prohibitions on software would take effect with the 2027 model year, while the hardware restrictions would start in 2029 or 2030, the report said.

The rule would cover vehicles with Bluetooth, satellite, and wireless features, as well as highly autonomous vehicles and would extend to other foreign US adversaries, including Russia, according to the report.

The department plans to give the public 30 days to comment before any finalization of the rules, Reuters reported.

(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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