President Biden announced measures on Thursday to prevent Chinese electric vehicles from entering the American auto market due to national security concerns. He stated that internet-connected cars and trucks from China could potentially send sensitive information to Beijing through their operating systems.
The immediate action involved initiating a Commerce Department investigation into security threats posed by Chinese vehicles, which could result in new regulations or restrictions.
This is the first step in a series of potential policy responses aimed at preventing low-cost Chinese electric vehicles from dominating the U.S. market and threatening domestic automakers.
China’s rapid production of electric vehicles has clashed with President Biden’s efforts to support American automakers in dominating the market. Some Chinese cars are priced significantly lower than American-made electric vehicles.
The administration’s actions on Thursday were influenced by discussions with Detroit automakers, union autoworkers, and Tesla. Former President Trump has criticized Biden’s push towards electric vehicles, and both candidates are emphasizing toughness on China.
The Commerce Department investigation into Chinese electric vehicles is a response to the threat posed by the technology in these vehicles, including software that could track sensitive information of American drivers.
The announcement reflects a trend of increasing technology restrictions on China and marks the first use of authority granted under an executive order issued by Trump in 2019.
Further steps may be taken to restrict Chinese vehicle imports into the U.S. market, including potentially increasing tariffs on Chinese vehicles.
The Treasury Department has proposed rules to limit China’s supply of materials for electric vehicles eligible for a tax credit included in Biden’s climate bill.
The Commerce Department investigation stemmed from conversations with automakers last fall, highlighting concerns about Chinese software in American vehicles.
The focus of Thursday’s action was on software concerns related to Chinese vehicles, emphasizing the importance of a strong U.S. auto industry for economic and national security.
