The Biden administration has announced plans to investigate Chinese-made “smart cars” that may pose national security risks by gathering sensitive information about American drivers.
This investigation could result in new regulations aimed at preventing China from using advanced technology in electric and connected vehicles to track drivers and their personal data. Officials are worried that features like driver assistance technology could be exploited for spying purposes.
Although this action falls short of a total ban on Chinese imports, President Biden emphasized his commitment to protecting Americans’ data.
“China’s unfair practices are aimed at dominating the global auto market,” Biden stated in a release. “Their policies may flood our market with their vehicles, posing a threat to our national security. I will not allow this to happen on my watch.”
The Commerce Secretary, Gina Raimondo, likened connected cars to “smart phones on wheels” and pointed out the significant national security risk they present.
The investigation will focus on understanding the risks associated with “connected vehicles” from China and other countries deemed hostile to the United States, like Russia and Iran. The Commerce Department will collect information from the auto industry and the public to gauge the nature of these risks and suggest potential regulations.
Officials are concerned about the potential for foreign governments to access vital systems or data in connected vehicles, posing new threats and vulnerabilities.
While high tariffs imposed by the previous administration have deterred Chinese automakers from entering the U.S. market, concerns about the potential costs are still prominent. The Alliance for Automotive Innovation, representing major automakers, supports Biden’s efforts to protect public safety and urges close collaboration with the industry to target risky transactions effectively.
The Alliance for American Manufacturing also recognizes the importance of addressing data security in connected vehicles manufactured by Chinese companies. They hope the investigation leads to swift and decisive action to safeguard national and economic security.
On the international front, the European Union is also addressing concerns about Chinese electric vehicle subsidies through a trade investigation initiated last year.