Fearing Chinese spy efforts, the U.S. Department of Commerce has proposed a new regulation that would ban any software or internet-connectivity hardware made by China from being placed in U.S. cars.
This comes after the Biden administration put 100 percent tariffs on Chinese electric vehicles (EV), which add on to restrictions on materials from earlier legislation that aim to make it hard or impossible for the Chinese to sell their EVS in the U.S., or to supply components for U.S. makers. At a 100 percent tariff rate, a Chinese car that would retail for $20,000 would cost the consumer $40,000.
Speaking to the Detroit Economic Club this week, Lael Brainard, deputy director of the National Economic Council said the U.S. needs to safeguard consumers against “national security risks from China.” Since internet connectivity is so widespread now in automobiles, this leaves open a big door through which adversarial nations could take action against the U.S. The new ban proposed by Commerce is meant to protect the auto supply manufacturing chain “from foreign threats,” Brainard said.
Modern cars are just packed with computers, and not just control boxes that set engine timing. Advanced driving systems that can partially drive the car, information gathering on driver behavior, and more, is collected by most cars. Commerce Secretary Gina Raimondo said not many U.S. cars yet have Chinese-made software or hardware, it’s better to put up fences now to stop it happening. She said this will help shield Americans, especially young people, “from potential surveillance.”
The Biden administrations’ approach to the issue seems to take account of American manufacturers’ fears of being out-competed by China, too. Though the new rules are aimed at fears of spying on citizens—both a personal and a national security threat—anything that helps keep Chinese cars out will benefit the U.S. auto industry. This has political implications for Democrats running for office this fall over and above the presidential race.
Tyson Slocum of Public Citizen said modern cars are basically smart phones on wheels. He said legislation needs to account for the fact that they’re not just machines to move people around anymore, but they’re mobile communications devices.
