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On August 5, 2024
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US Mulls Ban On Chinese Software In Self-Driving Vehicles: Report - BYD (OTC:BYDDF), Baidu (NASDAQ:BIDU)
In a move that could reshape the autonomous vehicle industry, the U.S. Commerce Department is said to be readying a proposal to ban Chinese software in autonomous and connected vehicles, according to insiders. What Happened: The Biden administration is planning to issue a proposed rule that would prohibit Chinese software in U.S. vehicles with Level 3 automation and above, Reuters reported on Monday. This would effectively ban the testing of autonomous vehicles produced by Chinese companies on U.S. roads. The administration also plans to propose a ban on vehicles equipped with Chinese-developed advanced wireless communications modules from U.S. roads. Automakers and suppliers must confirm that none of their connected vehicles or advanced autonomous vehicle software was developed by a "foreign entity of concern" like China. Last month, the Commerce Department announced its intention to issue proposed rules on connected vehicles in August, with expected limitations on some software made in China and other countries considered adversaries. See Also: Harris-Buttigieg Could Be Beneficial For Tesla, But Expert Says Elon Musk Still Hopes To 'Have Some Influence' Over Trump To Change His EV Stance A spokesperson for the Commerce Department expressed concerns about the national security risks associated with connected technologies in vehicles. The department's Bureau of Industry and Security will issue a proposed rule focusing on specific systems of concern within the vehicle. On Wednesday, the White House and State Department hosted a meeting with allies and industry leaders to discuss the national security risks associated with connected vehicles. The administration's planned rule was disclosed at this meeting. Meanwhile, a spokesperson for the Chinese Embassy in Washington urged the U.S. to abide by market principles and international trade rules and create a level playing field for companies from all countries. Why It Matters: This move comes amid a surge of Chinese autonomous driving IPOs, such as WeRide Inc. HSAI and Baidu BIDU, entering the market. The Biden administration has been considering measures to limit China's access to advanced technologies, including AI chips and autonomous driving technology. Meanwhile, Chinese automakers like BYD BYDDF and NIO NIO have been approved to test their automated driving technology on public roads in China. Meanwhile, companies like XPeng Inc. XPEV are revamping their teams to stay competitive in the autonomous race. Read Next: Tesla's Franz von Holzhausen, Cybertruck's Lead Designer, Celebrates 16 Years: 'Amazing What The Team Has Accomplished' Image via Shutterstock This story was generated using Benzinga Neuro and edited by Pooja Rajkumari Market News and Data brought to you by Benzinga APIs
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What's Going On With Chinese EV Stocks Nio, XPeng And Li Auto On Monday? - XPeng (NYSE:XPEV), NIO (NYSE:NIO), Li Auto (NASDAQ:LI)
Chinese EV stocks Nio, XPeng, and Li Auto fell after US plans to ban Chinese software in autonomous vehicles. Chinese EV stocks Nio Inc NIO, XPeng Inc XPEV, and Li Auto Inc LI are trading lower Monday after reports indicated the U.S. Commerce Department's plans to ban Chinese software in autonomous and connected vehicles. Tesla Inc TSLA is also trading lower by over 8% Monday. The U.S. government is weighing a prohibition on Chinese software in U.S. vehicles with Level 3 automation and above, banning the testing of autonomous vehicles produced by Chinese companies on U.S. roads. The Biden Government is also eying an embargo on vehicles equipped with Chinese-developed advanced wireless communications modules from U.S. roads. Also Read: Chinese EV Makers Spent Up To 29% Of Q1 Revenue On R&D, Leaving Elon Musk's Tesla In The Rearview Mirror, But Rivian And Lucid Spent Even More Separate reports indicated a delay in Nvidia Corp's NVDA artificial intelligence chip delivery, which could extend for three months or more due to design issues. AI chips are also an integral component for EV stocks, from Tesla to its Chinese counterparts. Recently, the Chinese EV companies received a boost from reports indicating that China plans to increase its stimulus program by 300 billion yuan ($41.5 billion) to subsidize passenger vehicle purchases. Nio delivered 20,498 vehicles in July, up by 0.2% year-on-year. Li Auto delivered 51,000 vehicles in July, marking a 49.4% jump year-on-year. XPeng delivered 11,145 vehicles last month, up by 1% year-over-year. The EV companies are battling a weakness in demand and are doling out discounts to spur demand. Nio stock plunged 73% in the last 12 months. XPeng lost 60%, and Li Auto lost 59%. Price Actions: NIO shares were trading lower by 7.41% to $3.75 at last check Monday. XPEV is down 5.49 at $7.14, and LI is down 3.59% to $18.51. Photos via Shutterstock Market News and Data brought to you by Benzinga APIs
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The US government is contemplating a ban on Chinese software in autonomous vehicles, raising concerns about national security. This potential move has affected Chinese EV stocks, particularly NIO, XPeng, and Li Auto.
The United States government is considering a ban on Chinese software in self-driving vehicles, citing national security concerns. This potential move comes as part of broader efforts to address perceived threats from Chinese technology in critical infrastructure and sensitive sectors 1.
The proposed ban would specifically target software developed by Chinese companies for use in autonomous vehicles. The concern stems from the potential for such software to collect and transmit sensitive data back to China, potentially compromising US national security interests.
The news of the potential ban has had a significant impact on Chinese electric vehicle (EV) stocks, particularly NIO, XPeng, and Li Auto 2. These companies, which are at the forefront of developing electric and autonomous vehicles, saw their stock prices affected as investors reacted to the news.
This development is part of a larger trend of increasing scrutiny and restrictions on Chinese technology in the United States. It follows similar actions taken against Chinese companies in other sectors, such as telecommunications and social media.
The potential ban reflects growing concerns about data security and the role of technology in national security. It also highlights the complex relationship between the US and China in the tech industry, where competition and security concerns often intersect.
If implemented, the ban could have far-reaching consequences for the autonomous vehicle industry. Many companies in this sector rely on global supply chains and collaborative efforts in software development. A ban on Chinese software could disrupt these relationships and potentially slow down innovation in the field.
While official responses from the affected Chinese companies have not been widely reported, it is likely that they will contest any potential ban. These companies may argue that their software does not pose a security risk and that such a ban would be detrimental to the advancement of autonomous vehicle technology.
This potential ban on Chinese software in self-driving vehicles is indicative of the ongoing technological competition between the United States and China. As both countries strive for dominance in emerging technologies like artificial intelligence and autonomous systems, we can expect to see continued scrutiny and potential restrictions in sensitive sectors.
The situation remains fluid, and it is unclear whether the ban will be implemented or in what form. However, the mere consideration of such a move underscores the complex interplay between technology, national security, and international relations in the modern era.
Chinese EV maker XPeng sees a surge in stock price following announcements of global expansion and advanced software upgrades. The company's strategic moves and technological innovations are attracting investor attention.
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The United States implements stricter semiconductor export controls, while China finds ways to circumvent AI chip bans. This ongoing tech conflict threatens to reshape the global technology landscape.
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Despite US restrictions on China's access to advanced AI chips, major Chinese tech companies are ramping up their investments in artificial intelligence. Alibaba and Tencent are leading the charge with significant financial commitments and strategic partnerships.
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Major automakers Ford and General Motors are experiencing profit declines due to slowing electric vehicle sales and ongoing cyber outages. Meanwhile, LG Energy and GM are adjusting their US plant plans in response to the changing EV market landscape.
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Elon Musk's recent post on X featuring an AI-generated video of Chinese President Xi Jinping has sparked controversy and raised concerns about Tesla's operations in China.
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