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Home»Connected Life»US Seeks To Restrict Or Ban Chinese EV Makers And Their Connected Cars
Connected Life

US Seeks To Restrict Or Ban Chinese EV Makers And Their Connected Cars

Gugu LourieBy Gugu Lourie2024-05-30Updated:2024-06-04No Comments5 Mins Read
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The Reality of Inexpensive Chinese Electric Cars. Image by Capital One
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U.S. Representative Elissa Slotkin has unveiled the Connected Vehicle National Security Review Act, a piece of legislation aimed at bolstering national security in the automotive sector. This new bill proposes the establishment of a formal review process for connected vehicles manufactured by Chinese EV makers or other nations deemed of concern.

Under the legislation, the Department of Commerce would be empowered to restrict or prohibit the entry of such vehicles into the U.S. market if they are found to pose a potential threat to national security.

“Today’s vehicles are more sophisticated than ever, carrying cameras, radars and other sophisticated sensors, plus the ability to process, transmit and store the data they gather from the United States,” said Slotkin, a former CIA analyst and Pentagon official.

“If allowed into our markets, Chinese connected vehicles offer the Chinese government a treasure trove of valuable intelligence on the United States, including the potential to collect information on our military bases, critical infrastructure like the power grid and traffic systems, and even locate specific U.S leaders should they so choose. China owns a fast-growing share of the connected auto market in Europe and Mexico, so now is the time to make sure our defenses are up, before these vehicles enter the U.S. market.

“With that in mind, we’ve worked with the Commerce Department on this bill to establish a formal national security review of Chinese-made connected vehicles. The legislation would also codify the Department of Commerce’s authority to ban any connected vehicles from the U.S. market if the review makes clear they pose a risk to national security.”  

In a speech on the House floor earlier this month, Slotkin warned of the threat posed by connected vehicles and called for the vetting of such vehicles through a national security. Last week, multiple provisions championed by Slotkin were added to the Fiscal Year 2025 National Defense Authorization Act and subsequently passed out of the House Armed Services Committee, including a ban on Chinese connected vehicle at U.S. military bases and a prohibition on the procurement of Chinese-made LIDAR by the Department of Defense.

The Connected Vehicle National Security Review Act would establish in law explicit authorities provided to the U.S. Department of Commerce and other federal agencies under Executive Orders from both the Trump (EO 13873) and Biden (EO 14034) administrations by providing more explicit statutory authority, strengthening protections against national security risks and preventing a future president from reversing the executive orders and lowering the nation’s guard against those risks. The legislation would also give additional statutory authority to any future decisions to restrict connected vehicles built by countries of concern.

Under the legislation, the Department of Commerce would have the authority to review any sale, importation, or other transaction that:

  • Involves a connected vehicle designed, built, or supplied by anyone controlled by or subject to the jurisdiction of one of six countries of concern, including China. This includes connected vehicles that are manufactured by Chinese companies operating in third countries like Mexico; and
  • Presents an undue or unacceptable risk – including the risk of sabotage or subversion of other electronic systems, risk to critical infrastructure, or other unacceptable risk to national security or to the safety of Americans.

Slotkin is announcing the legislation at the Mackinac Policy Conference, where she and Commerce Secretary Gina Raimondo are appearing.

In February, the Biden Administration announced an investigation led by the Department of Commerce into the risks of connected vehicles from countries of concern, including China. That investigation is taking place under a series of executive orders issued by President Biden and President Trump – orders that could be revoked by a future president. That’s not just hypothetical: former President Donald Trump, who issued an order that would have given the U.S. government authority to address security risks from the TikTok social media platform, has since office repudiated his past position and opposed efforts to force a sale of TikTok from its China-based owners.

The Act would go beyond the limits presented by traditional trade-restriction tools, such as tariffs, which may not prevent countries of concern from establishing production in Mexico or other nations for export to the United States. Under the legislation, any connected vehicle or built by a company under the ownership, control or jurisdiction of a country of concern is subject to national security review.

Draft text of the bill, which will be introduced when Congress returns from Memorial Day recess, is available here

Also read: Electric Vehicles Expected To Debut in South Africa As Soon As 2026

The first ever all-electric BMW i4
The first ever all-electric BMW i4

Trade, Industry and Competition Minister Ebrahim Patel has released a White Paper that outlines a comprehensive electric vehicle (EV) roadmap for South Africa and the structure of a suite of policy interventions tailored to the automotive industry.

“It is a product of constructive engagement with stakeholders, including within government, industry and labour, to chart a viable and sustainable transition path for the industry,” Patel said on Monday.

At a media briefing in Pretoria, Patel said the primary goal of the White Paper is to set a course to transition the auto industry from primarily producing Internal Combustion Engine (ICE) vehicles to a dual platform that includes EVs in the production and consumption mix, alongside ICE vehicles in South Africa by 2035.

“This vision is aligned with the foundational objectives outlined in the SAAM, a strategic framework implemented from 2021 to shape the nation’s automotive industry,” Patel said.

Patel explained that it also aligns with changing demand in export markets and South Africa’s commitment to reducing greenhouse gases.

China Chinese Connected Cars Chinese EV Makers EVs security US-China Trade War USA
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