Biden administration scrutinizes security concerns surrounding Chinese-made ‘smart vehicles’

WASHINGTON — The Biden administration has announced an investigation into Chinese-made “smart cars” due to potential national security risks. The concern is that these vehicles could collect sensitive information about American drivers, leading to fears of spying and data exploitation.

While the administration is not imposing a ban on Chinese imports, President Biden is taking steps to protect American data and prevent China from dominating the auto market with unfair practices. Commerce Secretary Gina Raimondo highlighted the risks posed by connected cars, stating that they are essentially “smartphones on wheels” that can gather personal and biometric data, potentially compromising national security and privacy.

In addition to data collection concerns, officials also worry about the potential for bad actors to remotely disable or manipulate connected vehicles, posing cyber risks and espionage threats. The Commerce Department is launching an investigation into these national security risks posed by “connected vehicles” from China and other hostile countries, seeking input from the auto industry and the public to develop regulations to address the issue.

Despite the current low number of Chinese cars imported to the U.S. due to tariffs, officials are concerned that Chinese companies may find ways to circumvent these tariffs and enter the U.S. market through nearby countries like Mexico. With electric vehicles and connected cars increasingly relying on advanced technologies, the risk of foreign governments gaining access to sensitive systems or data is a top priority for the administration.

As Chinese automakers look to expand overseas, concerns about competition in the electric vehicle market are growing. Industry leaders worry that Chinese companies could gain a stronger foothold in the automotive market, particularly in electric vehicles, posing a threat to U.S. companies. The European Union has also taken steps to investigate Chinese subsidies for electric vehicles, indicating a global concern about the rise of Chinese exports in the automotive industry.