The Biden administration has finalized a rule that effectively bans new personal smart cars with Chinese and Russian technology from American roads and takes steps to allow President-elect Donald Trump to extend those restrictions to commercial vehicles.

The United States finalized a rule Tuesday effectively barring Chinese technology from cars in the American market, taking aim at software and hardware from the world's second biggest economy over national security risks.

Fi, Bluetooth, and satellites—such as autonomous driving systems—collect too much 'sensitive' data on drivers and US infrastructure.

The Biden administration says it wants to prevent China from spying on Americans through their vehicles. But the rule could block popular vehicles like Polestar from selling in the US.