The White House announced a significant move on Thursday, initiating an investigation into the potential national security risks posed by Chinese-made vehicles with “connected” car technology. This unprecedented action, as President Biden himself described it, aims to determine if restrictions on such imports are necessary to safeguard sensitive data and infrastructure.
Citing concerns that Chinese-assembled smart vehicles could collect and transmit sensitive data about American citizens and infrastructure back to China, the Commerce Department will spearhead the investigation. The potential risks arise from the vast amount of data these vehicles gather through sensors and cameras, potentially compromising privacy and posing security threats. Additionally, the White House raised concerns about the possibility of remote control or disabling of such vehicles.
While the investigation is in its early stages, the Biden administration emphasized its commitment to acting preemptively before Chinese vehicles become widespread in the US. Commerce Secretary Gina Raimondo highlighted the importance of taking action “before Chinese manufactured vehicles become widespread in the United States and potentially threaten our privacy and national security.”
The announcement comes amidst limited current sales of Chinese-made light-duty vehicles in the US market. Major Chinese EV manufacturers like BYD have focused on other regions, with their sights set on Southeast Asia, the Middle East, and Europe. However, BYD’s recent announcement regarding a potential manufacturing plant in Mexico for the Mexican market suggests potential future expansion northward.
The investigation has drawn criticism from China, with the Chinese foreign ministry emphasizing unfair targeting and calling for an end to “hyping up the ‘China threat’ theory.” Meanwhile, the US continues to face pressure to restrict Chinese electric vehicle imports from Mexico, further escalating trade tensions between the two nations.
The investigation seeks public input through a 60-day comment period to gain a deeper understanding of potential risks associated with Chinese connected vehicles. This will be followed by potential regulatory measures aiming to address identified concerns. Notably, the US has a history of imposing restrictions on Chinese companies deemed security threats, citing data security issues.
The White House also pointed to China’s own restrictions on foreign vehicles operating within its borders, questioning why the same level of safeguards shouldn’t be applied in the US. This move underscores the growing complexities and concerns surrounding data security and autonomous vehicle technology in the global landscape. The Commerce Department’s investigation marks a significant step towards addressing these concerns and potentially shaping the future of US-China trade relations in the automotive industry.