All cars are increasingly connected to the internet and process huge amounts of data about the road and world around them using cameras and sensors, as well as tracking the movements and behaviour of their drivers.
Some cars also have advanced driver assistance systems and self-driving technology that can be remotely altered over the internet.
The restrictions will affect car software on new models from 2027 and car hardware from 2030. The proposed ban could also include cars that use Chinese technology for keyless unlocking, Reuters reported.
In February, the US ordered an investigation into connected cars, claiming they could be used to “collect large amounts of sensitive data on their drivers and passengers” and that they “regularly use their cameras and sensors to record detailed information on US infrastructure”.
The government added at the time the cars could be “piloted or disabled remotely”. President Biden said it was China’s policy to “flood our market with its vehicles, posing risks to our national security”.
But carmakers have warned swapping out Chinese-made software and parts would be challenging. It is also likely to prompt fears of retaliatory action from Beijing.
It is part of a wider spat with China, with the White House last week imposing 100pc tariffs on Chinese electric car imports as well as hikes on batteries and critical materials.
There are currently relatively few popular Chinese car brands that export to the US, although carmakers such as BYD are targeting dramatic expansion in Europe.
However, around a dozen Chinese companies hold a licence to test autonomous vehicle software in the US and have racked up tens of thousands of miles driving on California’s roads.
Connected vehicles have already been manipulated during periods of conflict.
In 2022, John Deere, the US agriculture giant, reportedly remotely locked millions of dollars worth of tractors and combine harvesters that had been stolen by Russian troops following the invasion of Ukraine.