President Joe Biden announced he is taking action against Chinese automakers to prevent them from selling electric cars in the U.S. due to safety risks.
There are currently 2.4 million EVs registered in the US, but Biden warned that if China is allowed to flood the EV market, automakers could easily track consumer data at a time when cars are constantly connected to our phones and navigation systems.
Equating vehicles to “smartphones on wheels,” he said his administration is examining the potential impact on national security with the possibility of a future ban on Chinese vehicles making their way into the U.S. market.
China has taken steps to ramp up its EV production in recent years; it accounted for 69 percent of all new global EV sales in December alone, and roughly nine million electric cars were sold in the country last year, compared to the 1.4 million units sold in the US in the country.
Concerns that BYD (pictured) will send their electric vehicles across US borders have led to calls from lawmakers that Biden should take additional action against Chinese automakers, including imposing new tariffs on Chinese-made vehicles
China has estimated it will sell 11.5 million electric vehicles this year and reportedly aims to control 45 percent of the electric car market by 2027, while the US predicts 2.5 million by 2028.
Biden said if Chinese electric cars are allowed to flourish in the US, the country could “collect sensitive data” and send it back to the People’s Republic of China (PRC).
He warned that China could also remotely access the electric vehicles or disable them altogether.
The U.S. Department of Commerce is investigating Chinese-made automotive software built into their electric vehicles that could track not only where Americans drive, but where they charge their cars or what music and/or podcasts they listen to while driving.
The research comes as BYD – the largest EV manufacturer in China – opens a production facility in Mexico, about 200 miles outside Mexico City.
Concerns that BYD will send their electric vehicles across U.S. borders have led to calls from lawmakers that Biden should take additional action against Chinese automakers, including imposing new tariffs on Chinese-made vehicles.
Chinese automaker BYD sold three million electric vehicles last year, while the US sold just 1.2 percent hybrid and EV cars out of 281 million registered in 2023
China is “flooding foreign markets with their cars,” said Lael Brainard, chairman of the President’s National Economic Council. New York Times.
“Many of those vehicles may be able to continuously connect to our infrastructure, to the drivers’ smartphones, to nearby cars. So they’re collecting a tremendous amount of information,” Brainard said.
President Joe Biden warned that Chinese-made electric cars could pose a national security risk to American drivers
In 2023, BYD sold three million electric vehicles worldwide, while of the 281 million cars registered in the US last year, only 1.2 percent were electric or hybrid vehicles.
BYD has overtaken Tesla as the top-selling EV manufacturer and is on its way to reaching new markets including Mexico and the Middle East. Yet BYD claims it has no plans to enter the US market.
“We have no plans to come to the US,” Stella Li, executive vice president of BYD and CEO of BYD Americas, said. Yahoo Finance.
“We are not even considering a northern state (in Mexico),” Li told the newspaper, adding: “We are focusing on the local market. That is the BYD strategy.’
Citing opposition from lawmakers and the slowing pace of electric vehicle growth, she said, “It’s an interesting market, but very complicated.”
Chinese electric vehicles sell for much less than those in the US, with prices as low as $11,000
However, the lower price tag of Chinese EVs could still entice Americans to buy the vehicles, with some smaller cars selling for as little as $11,000 each, while the average price of an electric vehicle in the US sells for $72,000.
The White House investigation into the national security risk that Chinese automakers pose to Americans comes after experts warned that Biden’s green energy plan could allow Chinese companies to “expand their global monopoly” and “enter the U.S. market.” dominate’.
The green energy plan offers companies tax breaks based on their manufacturing output, but raised concerns that Chinese companies would have access to them.
“The bottom line is that if you take markets like electric vehicle (EV) batteries or solar cells, where China already has a dominant global position, and you allow its companies to own facilities in the US and have access to US taxpayer dollars, je’ They are allowing them to expand their global monopoly,” Jeff Ferry, chief economist at the nonprofit Coalition for a Prosperous America, told Dailymail.com last week.
Biden appeared to heed these concerns when he announced the investigation into China’s expansion into the US EV market.
The Chinese spy balloon entered US territory last year and crossed the US before being shot down off the coast of South Carolina
“China is determined to dominate the future of the auto market, including through unfair practices,” Biden said.
“China’s policies could flood our market with its vehicles, which could pose risks to our national security.”
He added, “I’m not going to let that happen while I’m waiting.”
Former President Donald Trump imposed similar bans on Chinese companies in 2020 and expanded his executive order to prevent U.S. companies from purchasing telecommunications equipment from the People’s Republic of China.
Trump viewed foreign-made telecommunications equipment as a security risk and appeared to specifically target the China-based company Huawei, claiming that the local government could force it to install software in the equipment that could spy on Americans.
Meanwhile, Biden’s position on Chinese EVs appears to echo warnings from the Department of Homeland Security and the Federal Bureau of Investigation that Chinese-made drones could also pose a security risk by harnessing and exploiting data used by customers.
This was further illustrated by the appearance of the Chinese spy balloon that crossed the US last year before being shot down off the coast of Myrtle Beach, South Carolina.
The FBI said: ‘The use of Chinese-made UAS (Unmanned Aircraft Systems) in critical infrastructure operations risks exposing sensitive information to the authorities of the People’s Republic of China, jeopardizing the national security, economic security, and public health and safety of the US is in danger.’