US opens investigation into Chinese smart cars, citing security risks

On February 29, the US announced an investigation into potential security risks in smart cars made in China. The US government believes that the sensors, cameras and software in the cars could be used for surveillance or other malicious purposes.

The investigation comes as Chinese automakers expand globally, exporting a range of high-tech models and posing new challenges to Western rivals. While they are not yet common on American roads, they are becoming more popular in Europe, Asia and other markets.

Chinese automakers like China's BYD are expanding their market share globally. (Photo: Tada Images)

President Biden has compared modern cars to smartphones, saying they collect and share a wealth of data about drivers and their daily commutes with the cloud.

“These cars are connected to our phones, to our navigation systems, to our critical infrastructure, and to the companies that build them. Smart cars from China can collect sensitive data on our citizens and infrastructure and send that data back to China,” Biden said in a statement. “These vehicles can be accessed or disabled remotely… Why are smart cars from China allowed to operate in our country without protections?”

The Commerce Department-led investigation will not impose any immediate restrictions on the import or sale of Chinese-made cars, but the department has the authority to ban or restrict sales if it finds a serious risk, officials told The Washington Post.

Many of the vehicles in question are electric, but the concern lies not with the electric motors but with the software, cameras and high-tech sensors that could be exploited to collect data or sabotage the vehicles, officials said.

American automakers have expressed concern about fierce competition from Chinese cars. Ford CEO Jim Farley said Chinese automakers like BYD pose the biggest threat to the new electric vehicle market.

Recent reports that BYD and its compatriots are looking for factory locations in Mexico have added to concerns among U.S. automakers, who fear that cars made there could be imported into the U.S. with fewer trade restrictions under the U.S.-Mexico Trade Agreement (USMCA).

In his statement, Mr. Biden emphasized his desire to protect domestic automakers. “… We will ensure that the future of the auto industry is made here in America with American workers.”

Commerce Secretary Gina Raimondo said the investigation would help determine whether to act on an executive order from former President Donald Trump. Raimondo said the investigation was launched before Chinese-made vehicles arrived in the United States and “potentially posed a national security threat.”

(According to Washington Post)

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