President Joe Biden announced on Thursday that he has instructed the U.S. Secretary of Commerce to initiate an investigation into vehicles equipped with connected technology originating from China and other “countries of concern.”
In a statement, the president said that “China is determined to dominate the future of the auto market, including by using unfair practices.” He added that the country is poised to flood American roads with technologically advanced vehicles that could pose a risk to national security.
“Connected vehicles from China could collect sensitive data about our citizens and our infrastructure and send this data back to the People’s Republic of China,” said Biden. “These vehicles could be remotely accessed or disabled.”
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The Chinese Embassy in Washington has criticized the White House for suggesting that its vehicles pose a threat to Americans, Reuters reports. However, Biden claimed that China imposes restrictions on American automakers. Therefore, he asked, “Why should connected vehicles from China be allowed to operate in our country without safeguards?”
This wouldn’t be the first time the U.S. has imposed restrictions on Chinese companies over national security fears. It previously barred Chinese telecom companies from entering the market over similar concerns related to data usage.
White House officials said it was too soon to say what action the Secretary of Commerce might recommend in the case of automobiles. However, they said that the government has wide legal powers that could potentially have a “large impact.”
The U.S. has already restricted electric vehicles with Chinese batteries from qualifying for green vehicle tax credits. It also imposes a hefty tariff on the country’s vehicles, though it is said to be considering modifying those tariffs to target Chinese vehicles assembled in Mexico.
The Commerce Department is seeking comments for the next 60 days, and will consider drafting a regulation once that period has elapsed. The investigation will also look into details about vehicles assembled in the U.S., such as where their software comes from.
