The US Department of Commerce announced a final rule That’s Tuesday prohibiting the sale or importation of connected vehicles from China and Russia due to national security concerns. The rule would also prohibit Chinese car companies, such as WeRide and Pony AI, from testing self-driving cars on US roads.

“China is trying to dominate the future of the auto industry, but connected vehicles with software and hardware systems linked to foreign adversaries could expose Americans to the dangers of misuse of their sensitive data or interference by malicious actors,” National Economic Advisor Lael Brainard said in a statement, adding that the decision also ensures “a safer American auto industry.”

The software restrictions are scheduled to take effect in the 2027 model year, and the hardware restrictions in 2029. The department said the restrictions will not include Chinese software developed before the new rules take effect. , as long as a company in China does not have access to the software.

The final rule also includes exemptions for vehicles weighing more than 10,000 pounds, meaning China’s BYD can continue assembling electric buses in California.

There are some Chinese autonomous car companies with active testing permits in California. Baidu-owned Apollo Autonomous Driving and WeRide have permits to test AVs without safety drivers. Pony AI, which recently joined the public markets, has permission to test a safety driver. In the company’s IPO materials, Pony sensed a little risk which cannot proceed with more limited robotaxi testing in the US due to the impending ban, saying the operations generated “less than 1% of (its) total revenue in 2023 and the six months ending in June 30, 2024.

A spokesperson from the California Department of Motor Vehicles previously told TechCrunch that the agency will follow the Commerce Department’s lead when it comes to implementing restrictions on Chinese connected car technology. TechCrunch has reached out to find out if the DMV will revoke the permits now that the final ruling has been announced.