The US Commerce Department will increase scrutiny of Chinese car imports, citing security risks.

The U.S. Department of Commerce plans to release proposed rules regarding connected cars next month and is expected to impose restrictions on certain software from China and other adversary nations, a senior official said on Tuesday.

“We are focusing on some components and software, not the entire vehicle—but these will be key driving components that manage software and vehicle data, and these components must be produced in allied countries,” said Alan Estevez, head of export controls, at a forum in Colorado.

In May, Commerce Secretary Gina Raimondo stated that the Commerce Department planned to release proposed rules regarding Chinese connected cars this fall, and suggested that the Biden administration might take “drastic action” to ban or impose restrictions on Chinese connected cars. Prior to this, the Biden administration launched an investigation in February to determine whether imports of Chinese cars pose a national security risk.

Estevez's remarks are the clearest indication so far of the government’s stance on the Chinese automotive plans that have garnered widespread attention.

Connected cars are equipped with integrated network hardware, enabling them to access the Internet and share data with devices inside and outside the vehicle.

Estevez said on Tuesday that this threat is severe.