In 2023, China sent 5.26 million cars abroad — the country overtook Japan to become the largest exporter of cars in the world.
The Biden administration has launched an investigation into cars made in China and other countries of “concern” to determine whether they pose a safety threat. The White House notes that cars have a “permanent connection to drivers’ phones” and thanks to driver assistance systems can receive “information about other vehicles and the American infrastructure as a whole.”
“Autos collect a large amount of confidential data about their drivers and passengers; routinely use cameras and sensors to record detailed information about US infrastructure; interact directly with critical infrastructure; they can be controlled remotely,” the statement said.
The Ministry of Trade will lead the investigation.
“We need to understand how large arrays of information can be received by the technology of these cars, and whether it is possible to remotely manipulate connected vehicles. We are gathering information to determine whether to take action,” Commerce Secretary Gina Raimondo said.
As The Washington Post points out, cars made in China are not yet very common on US roads (in particular, due to the 27.5% tariff), but they are becoming commonplace in European markets. According to the China Passenger Car Association, the country sold 5.26 million cars abroad in 2023, overtaking Japan to become the world’s largest auto exporter.
U.S. officials said it was “too early” to determine what impact the investigation would have on Tesla, the U.S. company that manufactures electric cars in China. Nearly a third of the electric cars exported from China last year were Tesla models manufactured at its factory in Shanghai, the Financial Times notes.
In China, meanwhile, Tesla owners are already facing restrictions, including a ban on parking at some military compounds in Beijing over concerns about built-in cameras. Local military personnel and some employees of important government institutions and enterprises are prohibited from driving Teslas to work.
The U.S. has previously blocked Chinese telecoms from its market, citing data concerns, and has labeled Huawei and ZTE as threats. This week, Biden issued an executive order aimed at banning the sale of Americans’ personal data to countries such as Russia and China.
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