The Biden administration is proposing a rule to block the sale and import of Chinese- and Russian-made hardware and software for connected vehicles, potentially bolstering US security against a hacking threat that the Commerce Department describes as "very real."

The proposed ban aims to secure vehicles which can communicate externally through Wi-Fi, Bluetooth, cellular or satellite systems, a feature that ’ s increasingly commonplace with new vehicles. Officials said these systems are at risk for foreign interference, which could lead to disruption and sabotage.

"This is not about trade or economic advantage. This is a strictly national security action," US Commerce Secretary Gina Raimondo said in a call to reporters. "We are focused on the national security threat, very real threat, that connected vehicles pose to our country and the American people."

US and European officials allege that that the Chinese government and local automakers are unfairly subsidizing the industry, saying that it could lead to a flood of cheap imports that distort the market. That ’ s prompted both the US and EU to raise tariffs on Chinese electric vehicles. China has denied its systems pose a security threat and has said the tariffs are an attempt to stifle competition.

EV stocks mixed in morning trading. Tesla rose 3.6%; NIO fell 3.2%; XPeng fell 2.7%.