Potential Ban on Chinese Connected Vehicles in the U.S.
Introduction:
The U.S. is considering taking “extreme action” against Chinese connected vehicles due to national security concerns, according to Commerce Secretary Gina Raimondo. The Commerce Department is currently reviewing public comments as part of an investigation into the risks posed by Chinese vehicle imports.
The Threat of Chinese Connected Vehicles:
Raimondo expressed concerns about Chinese connected vehicles that could potentially collect massive amounts of data on American citizens. She emphasized the need for the United States to take these threats seriously, not just in relation to connected vehicles but also other tech issues. President Joe Biden has also vowed to take action to prevent an inundation of Chinese vehicle imports.
National Security Concerns:
The White House cited the collection of sensitive data by vehicles, along with the recording of detailed information on U.S. infrastructure through cameras and sensors, as reasons for launching the investigation.
Possible “Extreme Action”:
Raimondo mentioned that the U.S. could consider extreme actions such as banning Chinese connected vehicles altogether or implementing safeguards and requirements to mitigate security risks. However, she did not provide a specific timeline for any potential actions.
Automakers’ Concerns:
Automakers have raised concerns about the difficulties they may face in overhauling their technology systems to address national security concerns. They emphasized that vehicle systems, including hardware and software components, undergo thorough pre-production engineering and testing, making it challenging to easily replace them with systems from different suppliers.
Trade Group’s Stance:
The Alliance for Automotive Innovation, representing major automakers like General Motors, Toyota, and Volkswagen, submitted a filing stating that automakers are committed to developing frameworks that effectively mitigate risks associated with Chinese-designed systems. They stressed the need for a comprehensive approach to information and communications technology and services systems in connected vehicles.
South Korea’s Concerns:
South Korea’s government expressed concerns about the broad scope of the investigation into connected vehicle supply chains, as well as uncertainties regarding potential regulatory targets and implementation timing. They warned of significant burdens on the automotive industry.
Calls for Ban and Tariffs:
Sherrod Brown, a member of the Senate Banking Committee, urged the Commerce Department to ban all Chinese internet-connected vehicles and smart vehicle technology. Meanwhile, the Biden administration is also considering imposing new tariffs on Chinese-made vehicles. There is mounting pressure to restrict Chinese electric vehicle imports from Mexico as well.
Chinese Response:
The Chinese foreign ministry defended Chinese cars, stating that their global popularity stems from fierce market competition and technological innovation. They dismissed claims of “so-called unfair practices” relating to data handling.
Conclusion:
As the U.S. continues to assess the risks posed by Chinese connected vehicles, discussions surrounding potential bans and restrictions intensify. Automakers are grappling with the challenges of addressing national security concerns while highlighting the complexities of replacing existing technology systems. The stance of various stakeholders, including trade groups and foreign governments, adds to the complexity of finding a balanced solution.