Biden Administration Launches Probe into Security Risks of Chinese-Made Cars

Concerns Raised by Biden Administration over Chinese-manufactured Autos

On Thursday, the Biden administration announced an investigation into potential security risks associated with Chinese-manufactured automobiles. The administration expressed concerns that the advanced technology integrated into modern vehicles, including sensors, cameras, and software, could be exploited by China for espionage or other malicious purposes.

Global Impact of Chinese Automakers

As Chinese automakers continue to gain traction in global markets, the administration highlighted the growing presence of high-tech Chinese-made vehicles in Europe, Asia, and other regions. Although these vehicles have not yet permeated the U.S. market extensively, their increasing prevalence in other parts of the world has prompted the administration to address the potential risks they may pose.

President Biden's Remarks

President Biden drew parallels between modern cars and smartphones, emphasizing that they have the capability to gather and transmit a vast array of data, including information about drivers and their daily travel patterns. He expressed apprehensions regarding the collection of sensitive data by connected vehicles from China, cautioning that such information could be transmitted back to the People’s Republic of China, potentially compromising the privacy and security of American citizens and infrastructure.

Investigation and Potential Actions

The Commerce Department is spearheading the investigation, with administration officials affirming that while immediate restrictions on the import or sale of Chinese-manufactured automobiles are not being imposed, the agency holds the authority to prohibit or restrict sales if significant risks are identified.

Focus on High-Tech Software and Sensors

Emphasizing that the concerns primarily revolve around the use of high-tech software, cameras, and sensors in the Chinese-made vehicles, officials stated that the probe may draw parallels to the U.S. campaign against Huawei, the Chinese telecom giant, which faced accusations of posing security risks to communication infrastructure.

Impact on U.S. Automakers and Trade Concerns

The announcement of the investigation comes amidst mounting apprehensions voiced by Detroit automakers regarding the influx of Chinese vehicles in the global market. Ford CEO Jim Farley has specifically highlighted the competitive threat posed by Chinese automakers in the electric vehicle market, further intensified by reports of Chinese manufacturers exploring factory locations in Mexico, raising concerns about the vehicles entering the U.S. market with minimal trade restrictions under the USMCA.

Protecting the American Auto Industry

President Biden reiterated his commitment to safeguarding American automakers, emphasizing the administration's efforts to ensure that the future of the auto industry is rooted in the U.S., with a focus on American workers.

Exploring Executive Powers and National Security

Commerce Secretary Gina Raimondo underscored the potential implications of the investigation, stating that it would aid in determining whether action should be taken under a Trump-era executive order, designed to empower the president to safeguard domestic information and communications technology from national security threats.

Preemptive Measures

Raimondo emphasized the proactive nature of the investigation, highlighting the importance of addressing potential threats before Chinese-manufactured vehicles become pervasive in the U.S. and pose a risk to national security.