The US government is considering taking “extreme action,” such as restrictions or even a total ban against China-made connected vehicles amid security concerns, Reuters reports, citing the Commerce Secretary’s remarks on May 8, 2024.
White House warns of extreme actions against Chinese connected vehicles
Commerce Secretary Gina Raimondo declared Wednesday that the US could ban or inflict restrictions on connected vehicles imported from China following a national security probe.
Such extreme actions could be a huge blow to Tesla rivals like BYD and Geely, potentially impeding their possible expansion into the US auto market.
According to the report, the Commerce Department is currently reviewing public comments submitted until April 30 regarding the probe on imported China-made vehicles’ risk to national security.
“We have to digest all the data and then figure out what action that we want to take. We could take extreme action, which is to say no Chinese connected vehicles in the United States or look for mitigation.”
Commerce Secretary Gina Raimondo
Security concerns
The Biden Administration launched the Commerce probe on February 29 because China-made connected vehicles “collect large amounts of sensitive data on their drivers and passengers (and) regularly use their cameras and sensors to record detailed information on US infrastructure.”
At the time, White House officials reportedly said they still did not have enough basis to determine the appropriate action to address the national security concerns against connected vehicles from the Chinese market as it was still “too early.”
During a recent House of Representatives hearing, the Commerce Secretary expressed serious concerns about the said Chinese vehicle imports because they “could be collecting massive amounts of data on Americans, who they are, what they say in their car, where they go to, their patterns of driving.”
In line with Commerce Secretary Raimondo’s proposal, President Joe Biden has long been talking about certain measures to curb the surge of China-made vehicles in the local market.
Automakers’ response
In response to the Commerce Department’s ongoing investigation against Chinese connected vehicles, automakers emphasized the complexity of modifying their technologies to alleviate the White House’s concerns over national security risks.
The Alliance for Automotive Innovation asserted in a filing last April 30 that automakers ensure the development of a guideline for data and communications tech and services systems in connected vehicles to mitigate the security risks associated with Chinese-designed systems.
However, they also indicated that vehicle systems like hardware and software parts “undergo extensive pre-production engineering, testing, and validation processes and, in general, cannot be easily swapped with systems or components from a different supplier.”
The South Korean government also expressed its concern in a separate filing about the “broad scope of the investigation into connected vehicle supply chains, uncertainties surrounding the scope of potential regulatory targets and the timing of the implementation, all of which may lead to significant burdens on the industry.”
Apart from the potential restriction impositions or an ultimate ban, the US government is also considering imposing new tariffs on China-made vehicle imports under a separate endeavor. Moreover, officials are also pressured to curb Chinese electric vehicle imports from Mexico.
