The Biden administration has finalized a rule that effectively bans new smart personal vehicles powered by Chinese and Russian technology from US roads, and is taking steps to allow President-elect Donald Trump to expand these restrictions to include commercial vehicles.

According to Bloomberg, the US Department of Commerce's Bureau of Industry and Security announced its final rule on Tuesday, stating in a release that technologies from China and Russia pose an “undue and unacceptable risk to U.S. national security.”

US officials argue that modern vehicles, which contain devices linking them to the internet, are similar to computers and can collect sensitive data—including about drivers or owners—violating consumer privacy or allowing foreign adversaries to manipulate cars remotely.

The rule prohibits importing or selling vehicles connected to specific hardware or software components with a “sufficient nexus" to China or Russia, or the sale of these components separately. It also bars manufacturers linked to Russia or China from selling vehicles made in the US within the US.

The Department of Commerce stated that it plans to initiate a separate process focused on commercial vehicles, such as buses and trucks. The incoming administration will have to come up with a way to finalize these restrictions.

US sanctions 140 Chinese firms in latest chip technology crackdown

Last month, the South China Morning Post reported on the third wave of restrictions the US slapped on China to curb its semiconductor development, imposing new sanctions targeting 140 Chinese chip-related organizations.

Washington has been campaigning to hamper Beijing's ambitions in advanced technologies, particularly in semiconductors and artificial intelligence (AI).

The latest measures, introduced by the US Commerce Department, expand the trade blacklist, or "Entity List," to include key players in China's semiconductor supply chain.

Among the newly sanctioned companies are Naura Technology Group, AMC Research, Skyverse Technology, Empyrean Technology, and Nanda Optoelectronic Semiconductor Materials.

These firms provide critical support to China's state-driven efforts to localize its chip technology. The sanctions restrict these companies' ability to import US technologies and collaborate with entities using American-origin tools and software.

Industry analysts note that these restrictions are a significant escalation compared to previous sanctions, as they target foundational suppliers rather than just high-profile chipmakers.

The new controls also include tighter regulations on 24 types of semiconductor manufacturing equipment essential for producing advanced chips.

This move is expected to impact China's ability to procure tools for etching, wafer cleaning, ion implantation, inspection, and metrology—areas where the country remains heavily reliant on foreign imports.