joe biden The administration is considering restricting imports of Chinese-made “smart cars” and related parts beyond tariffs to address growing U.S. concerns about data security, officials said.
The measure applies to electric vehicles and parts made in China, regardless of where they are ultimately assembled, and prevents Chinese manufacturers from bringing vehicles and parts to the U.S. market via third countries such as Mexico. , officials said. The measure could also apply to other countries where the U.S. has data concerns, one of the people said. They added that tariffs alone cannot fully address the problem.
U.S. officials, who were granted anonymity to discuss confidential conversations, said they were particularly concerned about the large amounts of data collected by so-called smart cars, including electric vehicles and other types of connected and self-driving cars. officials said. Many modern cars, both gasoline and electric, have modems that connect them to the Internet, making them susceptible to hacking.
Some officials say the administration may seek to use existing U.S. Commerce Department authorities to regulate some ICT transactions to address data security concerns, but the administration may No decision has been made as a policy study is currently underway.
Another executive order aimed at ensuring general data privacy is expected to be announced as early as next week, and officials are also considering adjusting the 27.5% tariff on Chinese EVs originally imposed by President Donald Trump. are doing.
The White House and Commerce Department declined to comment.
Electric vehicles collect vast amounts of information about the driver and the surrounding environment, and fierce competition in the industry is pushing automakers to equip their vehicles with more and better sensors and driver-assistance software. I am encouraged. Chinese regulations require car companies to store and process much of their data domestically, and the regulations limit sensitive personal information collected by EVs, from license plates to facial features. may be targeted.
“Think about it.”
Commerce Secretary Gina Raimondo said last week that she was concerned that data could end up in the hands of the Chinese government, noting that China has banned the use of Tesla cars near government gatherings and for military purposes. . “We've been told that for national security reasons, you can't drive a Tesla on certain parts of China's roads,” she said at an Atlantic Council event. “Well, think about it. What are the national security concerns?”
Chinese automakers such as BYD have been kept away from the U.S. market in part because of high tariffs, but U.S. officials believe they may eventually choose to swallow those costs. The retail price of Chinese-made EVs is less than half that of U.S.-made ones, so a rush to buy Chinese cars could undermine Biden's efforts to accelerate domestic EV production. Congress also plans to prevent Chinese companies like Contemporary Amperex Technology, the world's largest EV battery maker, from taking advantage of tax credits in the Inflation Control Act, Democrats' signature climate law. There are also concerns.
Read: China splurges R768 billion on chip-making machines
The Biden administration is considering raising tariffs on Chinese EVs and other clean energy products in a long-awaited overhaul of Trump policies. But the broader effort, based in part on data security concerns, has exceeded initial expectations and countered potential attempts by Chinese companies to use shipments to third countries to avoid tariffs. It is intended to.
Companies such as BYD are considering Mexico as a place to invest in factories, and Treasury Secretary Janet Yellen said in December that the U.S. intends to help strengthen screening of foreign investments, including in Mexico.
President Trump, who has long been vocal about the ambitions of Chinese EV companies in Mexico, has vowed to gradually increase tariffs on China if elected in November, and this month announced that he would increase tariffs on China by a flat rate of 60, which he had previously proposed. He said the number could be even higher. %. — Mackenzie Hawkins, Josh Wingrove, Jennifer Jacobs, Eric Martin, Chunning Zhang, Keith Norton, (c) 2024 Bloomberg LP
