The US Department of Commerce has pointed out that the use of connected vehicles manufactured in China poses a national security threat to the United States. As the public consultation period on the investigation into Chinese-made connected vehicles by the US Department of Commerce has ended, an organization dedicated to safeguarding US energy security highlighted that foreign adversaries, especially the Chinese Communist Party, may exploit connected vehicle technology to steal sensitive user data and potentially launch cyber attacks against the United States.
According to a report by Fox Business, the organization “Securing America’s Future Energy” (SAFE) has publicly shared their response to the consultation, emphasizing the various threats Chinese-made connected vehicles pose to US national security. Avery Ash, Executive Director of the ReMo Alliance within SAFE, stated that foreign adversaries are seizing and utilizing critical supply chains to achieve geopolitical and economic objectives, which could lead to the collection of sensitive information, strategic intelligence, and cyber attacks on US soil.
The ReMo Alliance’s response to the Commerce Department highlighted that Chinese companies dominate the production of many essential automotive components and employ indirect methods to evade tariffs, presenting significant risks to the US market. Ash explained that Chinese companies often enter the US automotive market as suppliers of components produced in Canada and Mexico rather than directly shipping fully assembled vehicles. In 2023, Mexico was the largest supplier of automotive parts to the US, with China ranking third, but China also stood as the second-largest automotive parts supplier in Mexico.
Through this process, Ash pointed out that theoretically, the Chinese Communist Party (CCP) could circumvent any US tariffs. Since 2020, they have benefited from the US-Mexico-Canada Agreement (USMCA). Ash highlighted that the ongoing Commerce Department investigation is adding another tool to the toolbox, allowing the current or future administrations to use this tool to prevent such circumvention practices under the auspices of national security without undermining the US-Mexico Agreement.
Bipartisan support from members of the US Congress backs the US government’s investigation into Chinese-made connected vehicles. As part of further restrictions on CCP’s theft of US information, bipartisan members of the House “Task Force on China” have expressed strong concerns regarding this issue. Following investigations into Chinese-made cranes and the separation of the overseas version of the short video platform TikTok and its parent company ByteDance, the Task Force on China emphasized that connected vehicles serve as another method for the CCP to exploit vulnerabilities in the United States.
John Moolenaar, Chairman of the Task Force on China and Republican Representative, told Fox Business News, “Allowing Chinese connected vehicles to travel on US roads is akin to inviting Xi Jinping, the leader of the Chinese Communist Party, to sit in the driver’s seat in the US and conduct global surveillance.” Representative Moolenaar emphasized the necessity of a fair competitive environment, stating that if China bans US vehicles on Chinese roads, then Chinese automotive manufacturers should not have unrestricted access to US roads.
In February, US President Joe Biden instructed the Department of Commerce to investigate Chinese-made connected vehicles in response to national security threats. The White House highlighted that the abundance of sensitive data, including information from cameras and sensors in connected vehicles, poses a significant national security risk.
The White House statement outlined, “Connected vehicles amass a vast amount of sensitive data about drivers and passengers, regularly record detailed information about US infrastructure through cameras and sensors, directly interact with critical infrastructure, and could be remotely driven or disabled.” Additionally, it mentioned that connected vehicles relying on technology and data systems from countries including China could be exploited, jeopardizing national security.
Furthermore, the statement noted that China has imposed extensive restrictions on US vehicles and other foreign vehicles traveling on its roads.