US Reportedly Will Ban Key Chinese Software in Autonomous Vehicles

American depositary receipts (ADRs) of Chinese EV makers Nio (NIO) and Li Auto (LI) fell Monday pursuing indications nan U.S. will prohibition nan usage of Chinese package successful autonomous and connected vehicles successful nan coming weeks.

Reuters first reported that nan Commerce Department is expected to propose blocking Chinese-made package successful vehicles that person Level 3 automation aliases above. Level 3 automation allows drivers to return portion successful different activities, specified arsenic watching movies. A prohibition would efficaciously forestall testing of driverless vehicles made successful China. 

In addition, nan rules would besides barroom vehicles pinch Chinese-developed precocious wireless communications abilities modules from U.S. roads.

US, Allies Discussed Threats From Connected Vehicles

The reported scheme came arsenic nan White House has raised concerns astir risks to nationalist information from connected vehicles. Last Wednesday, nan State Department held a gathering pinch friends and manufacture leaders to talk nan imaginable threats from those technologies. Officials said astatine that gathering nan U.S. "and like-minded nations will research options for advancing affirmative cybersecurity standards and coordinating different imaginable argumentation measures to mitigate risks."

ADRs of Nio and Li Auto were down astir 3% and 1%, respectively, arsenic of 12:15 p.m. ET Monday. They are some down importantly year-to-date.