The Biden Administration is taking the first steps that could lead to the banning of connected cars from China.
The U.S. announced on Feb. 29 that it is opening an investigation into whether Chinese vehicle imports pose national security risks and could impose restrictions due to concerns about connected car technology.
According to U.S. official, the probe is needed because vehicles can “collect large amounts of sensitive data on their drivers and passengers (and) regularly use their cameras and sensors to record detailed information on U.S. infrastructure.”
As vehicles could “be piloted or disabled remotely,” the probe will look at autonomous vehicles as well.
Biden Statement
“China is determined to dominate the future of the auto market, including by using unfair practices. China’s policies could flood our market with its vehicles, posing risks to our national security,” President Joe Biden said in a statement. “I’m not going to let that happen on my watch.”
U.S. government officials did not provide a time line of when actions could be taken.
Issue of National Security
According to a Reuters report, officials told reporters the U.S. government has wide legal powers and could take action with a potentially “large impact”.
Biden called the effort an “unprecedented action to ensure that cars on U.S. roads from countries of concern like China do not undermine our national security.”
While there are relatively few Chinese-made vehicles being imported into the United States, Commerce Secretary Gina Raimondo said the administration was taking action before they become widespread and “potentially threaten our privacy and national security.”
Commerce Department Investigation
“We need to understand the extent of the technology in these cars that can capture wide swaths of data or remotely disable or manipulate connected vehicles, so we are soliciting information to determine whether to take action under our (Information and Communications Technology and Services) authorities,” said Raimondo.
In November 2023, a bipartisan group of U.S. lawmakers raised alarms about Chinese companies collecting and handling sensitive data while testing autonomous vehicles in the United States. Chinese EV makers have been counting on Southeast Asia, the Middle East and Europe as their largest exporting markets. BYD, the world’s largest EV maker by sales, has repeatedly said it has no plan to sell its cars in the U.S. market.
The Commerce Department will now seek comments for 60 days and then consider drafting regulations to address concerns. The probe will seeks details about current U.S.-assembled vehicles including where automakers license software as well.
Why Investigating China
Biden Administration officials said China poses significant restrictions on U.S. autos and other foreign autos operating in China. Under Xi Jinping, China has in recent years strengthened its oversight over data management within the country and most industries must apply for permission before data can be transferred abroad.
In May 2023, authorities tightened data rules for the auto industry and proposed to ban smart vehicles in China from transferring data directly abroad, pushing them instead to use domestic cloud services.
“Why should connected vehicles from China be allowed to operate in our country without safeguards?” Biden said. “With this and other actions, we’re going to make sure the future of the auto industry will be made here in America with American workers.”