WASHINGTON — Citing potential national security risks, the Biden administration says it will investigate Chinese-made “smart cars” that can gather sensitive information about Americans driving them.
The probe could lead to new regulations aimed at preventing China from using sophisticated technology in electric cars and other so-called connected vehicles to track drivers and their personal information. Officials are concerned that features such as driver assistance technology could be used to effectively spy on Americans.
While the action stops short of a ban on Chinese imports, President Joe Biden said he is taking unprecedented steps to safeguard Americans’ data.
“China is determined to dominate the future of the auto market, including by using unfair practices,” Biden said in a statement Thursday. “China’s policies could flood our market with its vehicles, posing risks to our national security. I’m not going to let that happen on my watch.”
Biden and other officials noted that China has imposed wide-ranging restrictions on American autos and other foreign vehicles.
Commerce Secretary Gina Raimondo said connected cars “are like smart phones on wheels” and pose a serious national security risk.
“These vehicles are connected to the internet. They collect huge amounts of sensitive data on the drivers — personal information, biometric information, where the car goes,” she told reporters late Wednesday. “So it doesn’t take a lot of imagination to figure out how a foreign adversary like China, with access to this sort of information at scale, could pose a serious risk to our national security and the privacy of U.S. citizens.”
Data collection is not the only concern, she and other officials said. Connected vehicles could also be remotely enabled or manipulated by bad actors.
“Imagine if there were thousands or hundreds of thousands of Chinese-connected vehicles on American roads that could be immediately and simultaneously disabled by somebody in Beijing,” Raimondo said. “So it’s scary to contemplate the cyber risks, espionage risks that these pose.”
Few Chinese cars are currently imported to the United States, in part because of steep tariffs the U.S. imposes on vehicles imported from China. Still, officials are concerned tariffs are not sufficient to address the problem. Some Chinese companies seek to avoid U.S. tariffs by setting up assembly plants in nearby countries such as Mexico.
Under a plan announced Thursday, the Commerce Department is issuing an advanced notice of proposed rulemaking that will launch an investigation into national security risks posed by “connected vehicles” from China and other countries considered hostile to the United States.
Commerce will seek information from the auto industry and the public on the nature of the risks and potential steps to mitigate them, the White House said. Officials will then develop potential regulations to govern the use of technology in vehicles from China and other “countries of concern,” including Russia and Iran.
“We’re doing it now, before Chinese manufactured vehicles become widespread in the United States and potentially threaten our privacy and our national security,” Raimondo said.
The investigation is the first action taken by the Commerce Department’s Bureau of Industry and Security under executive orders Biden issued to protect domestic information and communications technology from national security threats.
Electric vehicles and other cars increasingly rely on advanced technologies to enable navigational tools, provide driver-assist features and reduce operating costs and carbon emissions through fast charging, the White House said. The cars are constantly connecting with personal devices, other cars, U.S. infrastructure and their original manufacturer, posing national security risks, the White House said.
New vulnerabilities and threats “could arise with connected autos if a foreign government gained access to these vehicles’ systems or data,” the White House said.
High tariffs imposed by the Trump administration and continued by Biden have effectively deterred Chinese automakers from entering the U.S. market, but U.S. officials and industry leaders worry that Chinese companies might choose to absorb the additional costs as China leans more heavily on exports. Chinese car makers are looking to build more vehicles overseas, with EV giant BYD announcing plans last year for its first European plant.
Ford CEO Jim Farley said his company and others will have trouble competing on EVs with Chinese automakers, who have gone from no EV market share in Europe two years ago to about 10% now.
John Bozzella, president of the Alliance for Automotive Innovation, which represents major automakers, said proposed U.S. environmental regulations could let China gain “a stronger foothold in America’s electric vehicle battery supply chain and eventually our automotive market.”
The European Union, concerned about rising imports from China, opened a trade investigation last year into Chinese subsidies for electric vehicles. The investigation is ongoing.
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Associated Press writers Josh Boak in Washington and Tom Krisher in Detroit contributed to this story.
The United States government has recently launched an investigation into national security concerns surrounding Chinese-manufactured “smart cars” that are being sold in the country. This move comes amid growing fears about the potential for these vehicles to be used for espionage or cyber attacks.
The investigation, which is being led by the Department of Homeland Security and the Department of Transportation, will focus on whether Chinese-made smart cars pose a threat to national security. This includes looking into the possibility of these vehicles being equipped with surveillance technology that could be used to spy on American citizens or gather sensitive information.
One of the main concerns is that these smart cars could be vulnerable to hacking, allowing malicious actors to remotely access and control the vehicle’s systems. This could potentially lead to dangerous situations, such as hackers taking control of a car while it is in motion or accessing personal data stored in the vehicle’s onboard computer.
In addition, there are worries about the data that these smart cars collect and store. Many modern vehicles are equipped with advanced sensors and cameras that gather a wealth of information about their surroundings and the people inside them. If this data were to fall into the wrong hands, it could be used for nefarious purposes, such as tracking individuals’ movements or stealing sensitive information.
The investigation into Chinese-manufactured smart cars is part of a broader effort by the US government to address the growing threat of cyber attacks and espionage from foreign adversaries. In recent years, there have been numerous incidents of foreign governments and hackers targeting American companies and government agencies, leading to concerns about the security of critical infrastructure and sensitive information.
As a result, the US government is taking a proactive approach to safeguarding national security by scrutinizing the technologies and products that are being imported into the country. This includes conducting thorough investigations into the potential risks posed by Chinese-made smart cars and taking appropriate measures to mitigate those risks.
Ultimately, the goal of this investigation is to ensure that American consumers can trust the safety and security of the vehicles they drive. By identifying and addressing any potential vulnerabilities in Chinese-manufactured smart cars, the US government aims to protect national security and safeguard against potential threats from foreign adversaries.
