Washington, DC - The US Department of Commerce (DOC) is set to hand down bans on Chinese software used in self-driving autonomous vehicles.

In plans provided to Reuters, the ban will affect Level 3 autonomous vehicles and above.

This includes not only cars that have a self-driving option but still require a driver, but fully automated cars as well.

Seeing as many self-driving car manufacturers use software developed in China, the ban could have a wide-reaching impact on automakers and those supplying the US market.

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Additionally, the US ban may have an impact on Chinese companies which are testing self-driving vehicles within the US.

As of writing, there is no clear information on the timeline for such a ban nor the specific sanctions that it would introduce.

The proposed ban is meant to prevent vehicle software from being developed by a "foreign entity of concern," sources told Reuters.

A spokesperson for the DOC said on Sunday that the department, "Is concerned about the national security risks associated with connected technologies in connected vehicles."

"Connected vehicles are emerging as a key node in critical infrastructure as they constantly connect with other vehicles, personal devices, telecommunications networks, the electric grid, and other infrastructure," the State Department said in a press release last week.

"The United States and like-minded nations will explore options for advancing affirmative cybersecurity standards and coordinating other possible policy measures to mitigate risks."

In June, a spokesperson for the Chinese foreign ministry warned the US against imposing additional sanctions on the Chinese EV and self-driving vehicle space. The comments came after import tariffs were imposed on Chinese electric vehicles.

"China urges the US to earnestly abide by market principles and international trade rules, and create a level playing field for companies from all countries. China will firmly defend its lawful rights and interests," the spokesperson said.