The United States implemented new regulations in January 2025 restricting connected vehicles from using software developed or operated by Chinese companies, including products from firms controlled by Chinese capital. Citing national security concerns, the ban stems from fears that such vehicles could collect sensitive data from U.S. drivers. The software restrictions apply starting with model year 2027 vehicles, while hardware-related provisions will take effect with model year 2030 vehicles. Ford Motor Company has submitted an application to the U.S. Department of Commerce seeking permission to continue importing the Lincoln Nautilus SUV—vehicles assembled in China but equipped with U.S.-developed software. The Nautilus has been sold in the U.S. for years, and Ford plans to import the 2027 model in January 2026, requiring approval before the ban takes effect. General Motors (GM) intends to shift production of the Buick Envision to its Kansas plant in the U.S. beginning in 2028. Volvo Cars, owned by China’s Geely Holding Group, stated it has already secured the necessary approvals but emphasized that all models sold in the U.S. must remain fully compliant. Polestar, also under Geely ownership, said it is actively engaging with U.S. authorities to ensure compliance but did not confirm whether it has filed a formal application. The U.S. Department of Commerce does not disclose details of license applications or approval decisions, making it impossible to determine the total number of submissions. Automakers widely report facing a complex and opaque approval process, highlighting their deep integration with Chinese supply chains. Some companies have already begun relocating parts of their supply chains out of China; GM, for instance, has instructed suppliers to eliminate Chinese-made components by 2027. The new rules also impact auto parts suppliers. The Motor & Equipment Manufacturers Association (MEMA) noted that globally co-developed software and hardware are often inseparable, and regulatory boundaries remain unclear. Tire maker Pirelli, which has a major Chinese shareholder, initially faced potential restrictions but mitigated the risk by having the Italian government limit Chinese board representation and announcing that the affected products would be manufactured at its U.S. facility.