Implications for Chinese Smart Vehicles: The US Investigation into the Overtake of China by a Large-Scale, Low-Rate Automaker

The US government is investigating the potential risks to national security posed by smart car technology in China and other countries of concern.

The Commerce Secretary said on Wednesday that the investigation was being launched prior to Chinese vehicles becoming common in the US.

“China imposes restrictions on American autos and other foreign autos operating in China,” Biden said. Connected vehicles from China should not be allowed to operate in our country.

While no immediate restrictions are being put in place, administration officials told reporters on Wednesday that the investigation may lead to new regulations that could restrict or prohibit certain vehicle parts from being used in the US. It would mirror restrictions placed against companies like Huawei that could be used for espionage by the Chinese government. The short form video app owned by Chinese company ByteDance has been tried to restrict in the US.

Several years ago, the US was overtaken by China as the world’s largest auto market. Thanks to high tariffs, though, there are no Chinese-made cars for sale in the US. Some Chinese automakers are exploring opening up plants in Mexico, raising fears among US auto executives that they could soon start importing low-priced models into the country.

Chinese connected vehicles and the BIS-BIS investigation of spying, sabotage, and espionage on US roads

The Bureau of Industry and Security, a division of the Commerce Department, is looking at how sensor-laden, internet-connected vehicles could be used to commit espionage, collect data on US citizens, or commit sabotage on US roads.

Raimondo said that if there were hundreds of thousands of Chinese connected vehicles on American roads, someone in Beijing would cause them to go off the road.