(MENAFN- Live Mint) Citing national security concerns, the US administration is mulling a ban on Chinese software and hardware in connected and autonomous vehicles on American roads, said a Reuters report.

The American authorities have raised serious concerns about the collection of data by Chinese companies on US drivers and infrastructure as well as the potential foreign manipulation of vehicles connected to the internet and navigation systems, said the report.

“The proposed regulation would ban the import and sale of vehicles from China with key communications or automated driving system software or hardware,” the report said citing two sources.

Slamming the expected US proposal, China on Monday warned not to take“discriminatory actions” against its companies.

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According to a report by news agency AFP, foreign ministry spokesman Lin Jian said China urged“the US to respect market principles and provide an open, fair, transparent, and non-discriminatory business environment for Chinese enterprises”.

“China opposes the US' broadening of the concept of national security and the discriminatory actions taken against Chinese companies and products,” Lin said.

“China will resolutely safeguard its legitimate rights and interests,” he added.

In May, US Commerce Secretary Gina Raimondo had said that the risks of Chinese software or hardware in connected US vehicles were significant.

“You can imagine the most catastrophic outcome theoretically if you had a couple million cars on the road and the software were disabled,” she had said.

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In February, President Joe Biden had ordered a probe into whether Chinese vehicle imports pose national security risks over connected-car technology - and if that software and hardware should be banned in all vehicles on US roads.

The new proposal could further escalate the simmering trade row between the US and China.

Last week, the US government imposed steep tariff hikes on Chinese imports, including a 100 per cent duty on electric vehicles as well as new hikes on EV batteries and key minerals.

The prohibitions would extend to other foreign US adversaries, including Russia, the Reuters report said.

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