Recently, the U.S. government, under the leadership of President Biden, declared its intention to conduct a probe into the potential security hazards stemming from smart cars manufactured in China. The investigation stems from concerns that these vehicles could be used to gather sensitive information about American citizens and infrastructure, subsequently passing this data back to China, according to an official statement from the White House.
While a variety of other Chinese-produced technologies have come under the spotlight recently due to potential security risks, electronic vehicles have largely escaped such scrutiny. However, given their significance in the global transition towards cleaner, renewable energy sources, their rise in popularity in China has been generally welcomed.
Nevertheless, amid strained relations between the U.S. and China, it was only a matter of time before any exchange or interaction between the two nations came under security review. At the forefront of this now is the electronic vehicle industry. Economic and security concerns were identified as the two primary motivating factors behind this move.
Although electric vehicles weren’t specifically named in the official statement, it is clear that they are a major cause driving Chinese auto manufacturers to pose a significant threat to their American counterparts. Companies such as BYD are making affordable, high-quality EVs that are increasingly competitive on the global stage. An updated study from the industry-affiliated Alliance for American Manufacturing dubbed the EV competition as a significant threat to the American automobile industry.
According to Princeton University Sociology Researcher, Kyle Chan, the matter of importing Chinese EVs intersects with numerous key political issues. American job security, particularly in key manufacturing states like Michigan and Ohio, is at stake if the US auto industry doesn’t maintain competitiveness. Therefore, the perceived economic threat by Chinese EVs certainly warrants attention.
Surprisingly, this concern cuts across political lines. Prior to Biden’s initiative, former President Trump drew public attention to Chinese EVs, promising hefty tariffs on imported Chinese goods. Republican Senator Josh Hawley, a well-known critic of China, recently proposed legislation seeking a 125% tariff increase on Chinese-made cars, including those manufactured in other countries such as Mexico.
