US President Joe Biden has announced an investigation into the potential national security risks associated with Chinese technology in cars. He has instructed the Commerce Department to conduct the probe, focusing on connected vehicles that contain technology from “countries of concern,” such as China. The investigation aims to address threats and the potential collection of sensitive data.
In a statement, Biden expressed concerns about China’s determination to dominate the future auto market and criticized what he described as unfair practices. He highlighted the risks posed to national security by flooding the US market with Chinese vehicles.
The US government has been working to reduce the auto sector’s reliance on China, offering tax breaks for American-made electric vehicles and batteries while aiming to strengthen domestic production capacity.
The investigation specifically targets vehicles with constant connectivity to personal devices, other vehicles, US infrastructure, and their manufacturers, including electric and self-driving cars. The Commerce Department will gather information and provide a 60-day public comment period. While the possibility of imposing limitations on certain transactions exists, officials did not specify a timeline.
The White House emphasized that connected vehicles collect significant amounts of data on drivers, passengers, and US infrastructure through cameras and sensors. It also noted the potential vulnerabilities if a foreign government gains access to these systems or data.
Thibault Denamiel of the Center for Strategic and International Studies recognized the importance of the Biden administration’s focus on critical and emerging technologies, stating that it acknowledges the impact of these technologies on both economic growth and national security. Denamiel also highlighted that the measure considers the risks associated with technology transfers into the United States.
Previous actions, such as outbound investment restrictions and semiconductor export controls, primarily focused on technology transfers from the United States to foreign countries.
President Biden questioned why China imposes restrictions on American and other foreign autos operating in China while allowing connected vehicles from China to operate in the US without safeguards. Although there are currently not many vehicles with Chinese-made tech on US roads, Commerce Secretary Gina Raimondo emphasized the need to understand the extent of this technology in these cars.
An anonymous senior US official emphasized the importance of taking action before a large number of these vehicles enter the country. China’s automobile export market is growing rapidly and making significant inroads globally, including in Europe.
Various stakeholders have welcomed the investigation. The Alliance for American Manufacturing called for additional measures such as higher tariffs and limitations on electric vehicle tax credits. In November, 14 members of Congress raised concerns about data handling when testing autonomous vehicles in the US and sent letters to 10 China-related companies in the auto sector, including Baidu, Didi Chuxing, and AutoX.
The White House also announced that President Biden would issue an executive order aimed at restricting the flow of sensitive US personal data abroad, in addition to addressing concerns related to autos.
