The Biden administration is considering a move to block most Chinese-made cars and trucks from entering the US market.
The new rules are intended to protect US national security by preventing Chinese vehicles, software and hardware from entering the American market.
This follows an earlier move by the US to raise tariffs on Chinese electric vehicles.
Officials are concerned that if millions of Chinese cars are allowed on US roads, they could pose a security risk.
Commerce Secretary Gina Raimondo stressed the importance of acting early.
The rules, finalized on Tuesday, would ban Chinese software in cars that can connect to Wi-Fi and smartphones starting with the 2027 model year.
Hardware restrictions will follow in 2029, and these restrictions will also apply to Russian vehicles.
However, electric buses made by China’s BYD in California will be allowed to continue operating as they are exempt from weight regulations that exceed 10,000 pounds.
In addition, the government plans to introduce restrictions on Chinese software and hardware in large commercial vehicles.
This decision will be left to the next administration led by Donald Trump.
Unlike Biden, Trump is open to allowing Chinese automakers to build cars in the US instead of importing them.