Canadas auto industry is calling on the federal government to follow the U.S. lead and ban Chinese software and hardware used in connected vehicles on North American roads. The move, motivated by national security concerns, could result in a ban on key components, potentially excluding Chinese vehicles from the North American market.

　　Earlier this week, on September 23, the U.S. Department of Commerce proposed measures to restrict the use of these technologies, citing the risks of data collection on drivers (and owners) and US infrastructure, as well as the possible manipulation of connected vehicles. This comes after the White House launched an investigation into the matter in February.

　　Similar measures for Canada

　　Chrystia Freeland, Canadas Finance Minister and Deputy Prime Minister, said this week that the country is absolutely considering a similar ban. She stressed that the Canadian government was taking the threats posed by China seriously, particularly in terms of cyber security.

　　Tariffs and ongoing consultations

　　From October 1, a tariff of 100 percent (actually 102.5 percent) will be applied to Chinese-made electric vehicles imported into Canada. For now, the measure will affect only Tesla and Polestar, but that could be expanded if cybersecurity concerns are confirmed. Freeland also said that consultations with industry were underway, and that the government was assessing the need for further restrictive measures.

　　Harmonization with the United States

　　Brian Kingston, CEO of the Canadian Vehicle Manufacturers Association (CVMA), supported the U.S. initiative, stating that the risks identified in the U.S. regarding connected vehicle technologies also affect Canada. The Canadian Automotive Parts Manufacturers Association echoed that sentiment.

　　The risks of connected vehicles

　　Almost all new vehicles are now connected - equipped with cameras, microphones, Bluetooth connectivity and network hardware for Internet access. This allows data to be shared both inside and outside the vehicle, an aspect that China could use for espionage purposes.

　　Stakes for the automotive industry

　　If the proposed ban were to come into force for software in 2027 and for hardware in 2030, some manufacturers might need more time to comply with the new requirements. According to the Alliance for Automotive Innovation, very little connected vehicle hardware or software is currently imported from China, but manufacturers will need to find new suppliers to comply with the new rules.

　　A call to action for Canada

　　Doug Ford, Premier of Ontario, urged Canada to keep a close eye on its American allies. Canada must stay in step with our American allies and do the same, he said in a message posted on Platform X.

　　The Canadian and American automotive industries remain united in the face of a growing threat from connected vehicle technologies from China and Russia. As the U.S. moves towards bans, Canada could soon follow suit.