Washington — The Biden administration said Thursday it plans to investigate the national security risks posed by internet-connected vehicles from China, a probe that could result in a ban on Chinese vehicles in the United States.
Administration officials noted that a potential ban on connected vehicles — or CVs — resulting from the investigation is not guaranteed and would be a response to national security concerns, not economic competition.
However, in a statement accompanying the announcement, President Joe Biden repeatedly raised concerns about protecting the U.S. auto industry.
“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. I’m not going to let that happen on my watch,” he said.
The announcement signals rising concern from Biden’s team about Chinese automakers trying to penetrate the U.S. market and his own electoral competition with Republican frontrunner Donald Trump, who has vowed to place steeper tariffs on foreign vehicles if elected.
“Most cars these days are “connected” — they are like smartphones on wheels. These cars are connected to our phones, to navigation systems, to critical infrastructure, and to the companies that made them. Connected vehicles from China could collect sensitive data about our citizens and our infrastructure and send this data back to the People’s Republic of China,” Biden said.
“It doesn’t take a lot of imagination to think of how 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,” said U.S. Secretary of Commerce Gina Raimondo.
“It’s an incredible amount of information that you think is private, but that could be being transmitted abroad,” she added, noting the private phone calls, text messages and navigation routes enabled via the software in vehicles.
The investigation is partially a response to rules against American vehicles in China. “The PRC knows that connected vehicles are security threats … that’s why they have placed restrictions on U.S. EVs, near sensitive locations,” Raimondo said. “You can’t drive a Tesla to the airport, Beijing, for example.”
The investigation will be conducted by the Department of Commerce through its Bureau of Industry and Security. The department formally declared its intention to perform the investigation through an advance notice of proposed rulemaking.
Biden administration officials said there is no timeline for when the department will provide a specific proposal on potential limitations, or an outright ban, on Chinese vehicles.
The agency will accept public comments for 60 days following its formal notice, after which it will review the comments and determine next steps.
Biden administration officials said this investigation would focus on vehicles manufactured in China.
Vehicles available in the U.S. that are produced in China include the Buick Envision, Volvo EX30 and Polestar 2. Ford previously announced plans to build the Lincoln Nautilus in China.
Officials added that they are most concerned with cars manufactured in China by Chinese companies. They do not have a “precise number” of such vehicles currently on the road in the U.S. but said there are “very, very few.”
The department defined connected vehicles as “any automotive vehicle that integrates onboard networked hardware with automotive software systems to communicate via dedicated short-range communication, cellular telecommunications connectivity, satellite communication, or other wireless spectrum connectivity with any other network or device.”
The White House further described its concern for such technology in a statement.
“New vulnerabilities and threats could arise with connected autos if a foreign government gained access to these vehicles’ systems or data. Connected vehicles collect large amounts of sensitive data on their drivers and passengers; regularly use their cameras and sensors to record detailed information on U.S. infrastructure; interact directly with critical infrastructure; and can be piloted or disabled remotely.”
Thursday’s announcement comes some two weeks after reports that Chinese electric vehicle powerhouse BYD was considering building a manufacturing plant in Mexico, which stoked fears that the company’s cheap electric vehicles could enter the U.S. market and crush competitors.
Biden highlighted the importance of the U.S. auto industry in his statement. “American automakers and auto workers are the best in the world. The iconic Big Three and American auto workers are leading the world in quality and innovation. A dynamic auto industry is vital to the U.S. economy.”
@GrantSchwab
Tyler Fields is your internet guru, delving into the latest trends, developments, and issues shaping the online world. With a focus on internet culture, cybersecurity, and emerging technologies, Tyler keeps readers informed about the dynamic landscape of the internet and its impact on our digital lives.
