WASHINGTON, Jan 23, 2026, 10:15 (EST)
- Sources indicate Liz Cannon, head of Commerce’s ICTS unit, is set to depart on Feb. 20
- Her office played a key role in finalizing Biden-era regulations that have essentially barred nearly all Chinese passenger cars from entering the U.S.
- The shake-up comes after Commerce scrapped a plan to limit Chinese-made drones
The Trump administration has ousted Elizabeth “Liz” Cannon, who led the Commerce Department’s Information and Communications Technology and Services program set up in 2022 to tackle supply-chain risks from foreign foes, sources told Reuters on Friday. Cannon’s team helped finalize Biden-era rules that effectively banned almost all Chinese passenger vehicles from entering the U.S. market. She’s expected to depart on Feb. 20, according to two insiders. The Bureau of Industry and Security, which oversees the program, said staff changes will bolster the office. Sources also revealed the administration intends to replace Cannon with a political appointee. (Reuters)
This personnel shift hits a small corner of Commerce with outsized impact. It’s one of the rare spots in government where everyday tech—software, chips, radios, cameras—gets treated as a national-security gatekeeper, rather than just a trade matter.
The stakes have moved beyond steel and tariffs to data-packed machines. A “connected” car is essentially a moving network: it receives updates, streams location and sensor info, and communicates with phones and cloud platforms. U.S. officials warn these connections could be exploited to steal data or disrupt systems if the technology comes from a hostile country.
The Wall Street Journal also reported that Cannon and another official targeting China tech threats were ousted from BIS, with one of her deputies put on administrative leave. (The Wall Street Journal)
The departures follow closely on the heels of Commerce dropping its plan to restrict Chinese-made drones, Reuters reported earlier this month. This came after the Federal Communications Commission blocked imports of new drone models and key parts from China’s DJI and Autel, citing national security concerns. (Reuters)
Published in the Federal Register in January 2025, the connected-vehicle rule restricts certain transactions involving vehicle connectivity hardware and “covered software” linked to China or Russia. It targets vehicles under 10,001 pounds—covering most passenger vehicles. The rule also noted that BIS plans a follow-up action for heavier vehicles, leaving a current policy gap for commercial trucks. (Federal Register)
When Commerce unveiled its connected-vehicle proposal in September 2024, Cannon cautioned that ignoring the issue could “leave an open door for foreign adversaries” to infiltrate cars, according to a Commerce press release from that time. (Bis)
Once the rule was finalized, National Economic Adviser Lael Brainard stated it would “prohibit Chinese and Russian software and hardware” from connected vehicles operating on U.S. roads, according to the department. (Bis)
The shake-up might stall or shift ongoing projects, like those involving drones and heavier trucks, leaving companies uncertain about enforcement timelines. A political appointee could also encounter resistance from industry groups warning that wide-ranging restrictions risk disrupting supply chains and driving up costs.
