US President Joe Biden has initiated an investigation into the potential national security threats arising from Chinese technology integrated into automobiles. This inquiry, announced on Thursday, is prompted by concerns that such technology could facilitate the unauthorized collection of sensitive data.
China swiftly responded with criticism, denouncing the investigation as discriminatory and accusing the United States of weaponizing trade matters.
Directed by President Biden, the Commerce Department will spearhead the investigation, specifically targeting connected vehicles incorporating technology from nations deemed as “countries of concern,” notably China. The primary objective is to assess and address any security risks posed by these technological integrations.
In a statement, President Biden underscored China’s ambitions to dominate the global automotive market through what he termed as “unfair practices,” emphasizing potential threats to national security arising from the influx of Chinese vehicles into the US market.
Efforts to reduce dependence on China in the US auto industry have been ongoing, with initiatives such as tax incentives for domestically manufactured electric vehicles and batteries. This latest investigation encompasses vehicles equipped with technology enabling continuous connectivity to personal devices, other vehicles, US infrastructure, and their respective manufacturers, including electric and autonomous cars.
As part of the investigation process, the Commerce Department will solicit public feedback over a 60-day period. While the authorities may eventually impose restrictions on certain transactions, no specific timeline has been committed to.
The Chinese embassy in Washington expressed firm opposition to the US’s characterization of national security concerns and its alleged weaponization of economic and trade issues.
The White House highlighted the substantial data collection capabilities of connected vehicles, emphasizing the potential risks associated with unauthorized access to these systems or data by foreign entities.
Experts view this investigation as an acknowledgment by the Biden administration of the pivotal role of critical and emerging technologies in shaping both economic growth and national security. Notably, the focus extends beyond outbound investment restrictions and semiconductor export controls, encompassing risks associated with technology transfers into the United States.
President Biden justified the preemptive action by citing China’s own restrictions on foreign automobiles operating within its borders, questioning why connected vehicles from China should operate in the US without adequate safeguards.
Although the prevalence of vehicles containing Chinese-made technology on US roads is currently limited, Commerce Secretary Gina Raimondo stressed the importance of understanding the extent of such technology integration.
Elon Musk, CEO of Tesla, highlighted the competitiveness of Chinese car companies globally, suggesting their potential to outpace other manufacturers if trade barriers are not established.
The Alliance for American Manufacturing welcomed the investigation, advocating for additional measures such as increased tariffs and restrictions on electric vehicle tax credits.
In a separate executive order, President Biden aimed to curb the transfer of sensitive US personal data abroad, underscoring broader concerns regarding data security and privacy.
