US Opens Probe Into Chinese Smart Cars, Auto Technology on National Security Concerns


KEY TAKEAWAYS

  • The U.S. is launching an investigation into national security risks associated with smart vehicles made with Chinese technology and considering regulations to address those risks.
  • The White House said that vehicles connected to phones, navigation systems, and critical infrastructure could collect sensitive data about Americans.
  • The move comes as the government pushes U.S. automakers to reduce reliance on China with incentives such as tax credits to stimulate demand for electric vehicles that restrict use of Chinese suppliers. 
  • While the U.S. currently only imports a small number of cars from China, Chinese automakers have ramped up exports in recent years.

The U.S. is launching an investigation into national security risks associated with smart vehicles made with Chinese technology, the White House said Thursday.

“I have directed my Secretary of Commerce to conduct an investigation into connected vehicles with technology from countries of concern and to take action to respond to the risks,” President Biden said in his statement, pointing to China as one of the countries of concern.

Apart from looking into Chinese parts and technology that go into smart cars, the Biden administration has also tasked the Commerce Department with considering regulations to address those risks, according to a fact sheet accompanying the White House statement.

President Biden said that with many vehicles being connected to phones, navigation systems, and critical infrastructure, a foreign nation could potentially collect sensitive data about Americans. On top of that, the vehicles could also be accessed remotely or disabled, posing another risk.

“It doesn’t take a lot of imagination to think of how a foreign government with access to connected vehicles could pose a serious risk to both our national security and the personal privacy of U.S. citizens,” U.S. Secretary of Commerce Gina Raimondo said in a release. 

The move comes as the government pushes U.S. automakers to reduce reliance on China with incentives such as tax credits to stimulate demand for electric vehicles (EVs) that restrict the use of Chinese suppliers. 

Currently, the U.S. only imports a small number of Chinese cars, in part because of tariffs the U.S. imposes on vehicles imported from China. However, President Biden voiced concern that “China’s policies could flood our market with its vehicles, posing risks to our national security.”

Chinese automakers have ramped up exports in recent years, with China overtaking Japan as the world’s top country for car exports last year and Chinese EV makers like Nio (NIO) and BYD expanding their low-cost offerings overseas.

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