Summary
The Trump administration has pushed out Elizabeth “Liz” Cannon, the executive director of the Commerce Department’s Information and Communications Technology and Services (ICTS) office, whose unit finalized rules last year that effectively barred most Chinese-made passenger vehicles from the U.S. market. Her resignation, effective Feb. 20, introduces uncertainty over how Washington will police foreign technology in vehicles and other connected products.
Key developments
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Leadership change: Cannon resigned and would have been reassigned; the administration plans to install a political appointee to lead the ICTS office within the Bureau of Industry and Security (BIS).
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Rules remain in force: The Biden-era ICTS rules that effectively block Chinese passenger vehicles from the U.S. remain in place, and the White House has not signaled changes.
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Paused actions: Commerce withdrew a proposal to restrict or ban Chinese-made drones and has put on hold a separate rule targeting medium and heavy-duty trucks from “foreign adversaries.”
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Trade context: Amid a fragile U.S.-China trade truce, the administration allowed exports to China of Nvidia’s H200 and other advanced AI chips ahead of a planned Trump–Xi meeting in April.
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Office track record: Beyond autos, the ICTS office in 2024 barred sales of Russia’s Kaspersky Lab antivirus software in the U.S., citing national security risks.
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Industry impact: Dealers and importers remain shut out of Chinese-branded passenger cars; the fate of potential truck and drone measures could affect other market segments.
Why it matters
The ICTS office wields broad authority to scrutinize and block transactions involving connected technologies that pose “undue or unacceptable” national security risks. A leadership shift—paired with pauses on certain China-related actions—could reshape enforcement priorities at a time when automakers increasingly rely on globally sourced software, over-the-air updates, and connected components.
Statements and positions
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BIS stance: A spokesperson said the bureau remains committed to using ICTS authorities and that staffing changes will strengthen the office.
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Trump’s view on investment: While imports remain restricted, President Donald Trump signaled openness to Chinese automakers building plants and hiring in the U.S.
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Expert view: Analysts warn Cannon’s departure may leave a gap in expertise needed for nuanced, case-by-case national security determinations.
Additional context
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Background: The ICTS office, created in 2022 within BIS, investigates national security risks in U.S. supply chains across cars, drones, software, and other networked devices.
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Recent turnover at Commerce: Senior officials including Kevin Kurland, Dan Clutch, and Matthew Borman have recently departed, reshaping the agency’s upper ranks.
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Cannon’s profile: She joined Commerce in January 2024 from Microsoft after more than a decade at the Justice Department, where she worked on export control and sanctions cases, including the 2017 ZTE case.
What to watch
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Whether the administration maintains, narrows, or expands the existing passenger-vehicle restrictions.
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Any revival of measures targeting Chinese-made drones and medium/heavy-duty trucks.
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The leadership choice for the ICTS office and how it guides case-by-case enforcement ahead of the planned Trump–Xi meeting in April.
