American depositary receipts (ADRs) of Chinese EV makers Nio (NIO) and Li Auto (LI)▨ fell Monday following indications the U.S. will ban the use of Chinese software in autonomous and connected vehicles in the coming weeks.

Reuters first reported that the Commerce Department is expected to propose blocking Chinese-made software in vehicles that have Level 3 automation or above. Level 3 automation allows drivers to take part in other 🦂activities𒊎, such as watching movies. A ban would effectively prevent testing of driverless vehicles made in China. 

In addition, the rules would also bar vehicleܫs with Chinese-developed advanced wireless communications abilities modules from U.S. roads.

US, Allies Discus𒁏sed Threats From Connected Vehicles

The reported plan came as the White House has raised concerns about risks to national security from connected vehicles. Last Wednesday, the State Department held a meeting with allies and industry leaders to discuss the potential threats from those technologies. Officials said at that gathering the U.S. "and like-minded nations will explore options for advancing affirmative cybersecurity standards and coordinating other possible policy measures to mitigate risks."

ADRs of Nio and Li Auto were down about 3% and 1%, respectively, as of 12:15 p.m. ET Monday. They are both down significantly year-to-date.