The White House said on Thursday that the US is opening an investigation into the threats to national security posed by Chinese automotive imports, specifically with regard to their “connected” automobile technology.
The probe, led by the US Commerce Department, is motivated by concerns that these vehicles collect sensitive data on drivers and passengers and could potentially be controlled remotely, including autonomous vehicles.
National Security at Stake
President Joe Biden emphasized the importance of preventing Chinese vehicles from flooding the US market, stating, “I’m not going to let that happen on my watch.”
While no specific actions have been decided, officials highlighted the broad legal powers available to the US government, suggesting that potential restrictions or bans on Chinese connected vehicles could have a significant impact.
The Alliance for Automotive Innovation, a trade group representing major automakers such as General Motors, Toyota, and Volkswagen, called for close collaboration between the Commerce Department and the auto industry to determine the appropriate scope of any action.
They stressed the need to target transactions that pose risks to economic and national security while avoiding unintended consequences on advanced vehicle safety technologies.
Read more: South Korean Mall Bungee Jump Ends In Tragedy For Woman In 60
Chinese EV Makers Expand to Global Markets Amid US Scrutiny
Despite relatively few Chinese-made light-duty vehicles currently being imported into the United States, Commerce Secretary Gina Raimondo emphasized the importance of taking action before these vehicles become more widespread and potentially threaten privacy and national security.
Chinese EV makers, including BYD, have been focusing on other markets such as Southeast Asia, the Middle East, and Europe. In response to the US actions, the Chinese foreign ministry criticized the notion of unfair practices and emphasized the global popularity of Chinese cars due to market competition and technological innovation.
They urged the US to respect fair competition and create a non-discriminatory business environment.
Separately, the Biden administration is considering imposing new tariffs on Chinese-made vehicles and facing pressure to restrict Chinese electric vehicle imports from Mexico. The US has already taken steps to reduce reliance on Chinese electric vehicle battery supply chains.
The Commerce Department’s investigation will seek public comments for 60 days before considering drafting regulations. This move reflects ongoing concerns about Chinese companies collecting and handling sensitive data, as well as broader tensions between the U.S. and China over trade and national security issues.
Read more: US Senate Prepares To Vote On Avoiding Government Shutdown
