The United States is expected to propose banning the use of Chinese software in self-driving and connected cars

​The Commerce Department is expected to propose a ban on the use of Chinese software in self-driving and connected cars in the coming weeks, according to people familiar with the matter.

The Biden administration plans to issue a proposed rule banning the use of Chinese software in level 3 and above self-driving cars in the United States, which would also lead to a ban on testing self-driving cars made by Chinese companies on American roads, Reuters reported.

The U.S. government also plans to propose banning vehicles carrying advanced Chinese wireless communication modules from U.S. roads.

Under the proposal, automakers and suppliers would have to verify that none of their connected cars or advanced self-driving car software was developed in a "foreign entity of concern" such as China, the sources said.

The Commerce Department said last month it planned to issue proposed rules for connected cars in August that are expected to impose restrictions on some software made in China and other countries deemed hostile.

Asked on Sunday, a Commerce Department spokesman said the department is "concerned about the national security risks associated with connected vehicles and connected technologies." The Bureau of Industry and Security, part of the Commerce Department, will issue a proposed rule that "will focus on specific systems within vehicles." The industry will have an opportunity to review the proposed rule and submit comments."

U.S. Commerce Secretary Raymond Mundo said earlier this year that the national security risk was significant and that "we decided to take action because this is a matter of extreme gravity."

China's Commerce Ministry said in March that the United States was using "national security" as an excuse to block normal Chinese auto exports, which China expressed serious concern about.