On February 29, President Biden took action to prevent Chinese vehicles with internet access—including electric vehicles—from being sold in the United States. He confirmed that these vehicles present a threat to national security because their operating systems might transmit private data to China.
The Commerce Department initiated an emergency investigation into the security issues, which could result in new regulations or restrictions on Chinese cars. This investigation may lead to a complete ban on Chinese cars in the U.S., as officials have not provided a timeline for potential limitations.
Currently, the vehicles produced in China and sold in the U.S. include the Buick Envision, Volvo EX30, and Polestar 2.
However, administration officials clarified that they are initiating an extensive series of policy responses to prevent low-cost Chinese EVs from flooding the U.S. market. The goal is to avoid forcing domestic automakers out of business.
“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,” stated U.S. Secretary of Commerce Gina Raimondo in a media briefing. “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.”
The Department of Commerce, via its Bureau of Industry and Security, will carry out the investigation. The department published an advance notice of proposed rulemaking, publicly announcing that it would conduct the investigation.
Moreover, Biden’s announcement was made roughly two weeks after rumors that China’s top EV maker, BYD, was considering establishing a production facility in Mexico. This speculation fueled concerns that BYD’s low-cost electric cars might overtake rivals in the American market.
In his remarks, Biden emphasized the significance of the American auto industry. “In the world, American autoworkers and automakers are the best. In terms of quality and innovation, the recognizable Big Three and American autoworkers are world leaders. A dynamic auto industry is vital to the U.S. economy.”
