President Joe Biden announced that he is taking action against Chinese automakers to prevent them from selling electric vehicles in the US due to safety risks.
If China is allowed to flood the electric vehicle market, Biden warned that automakers could easily track consumer data at a time when cars are constantly connected to our phones and navigation systems.
He compared the vehicles to “smartphones on wheels” and said his administration is investigating the potential national security impact with the possibility of a future ban on Chinese vehicles entering the U.S. market.
China has made progress in recent years to increase its production of electric vehicles, accounting for 69 percent of all global new electric vehicle sales in December alone, and approximately nine million electric vehicles sold last year compared to 1 .4 million sold in the United States.
Concern that BYD (pictured) is shipping its electric vehicles across US borders has led to calls from lawmakers that Biden should take additional action against Chinese automakers, including imposing new tariffs on vehicles made in China.
China has estimated it will sell 11.5 million EVs this year and reportedly aims to control 45 percent of the EV market by 2027, while the United States predicts 2.5 million in 2028.
Biden said that if China’s electric vehicles are allowed to flourish in the United States, the country could “collect sensitive data” and send it back to the People’s Republic of China (PRC).
He warned that China could also access electric vehicles remotely or disable them entirely.
The US Commerce Department is investigating Chinese-made automotive software built into its electric vehicles, which could not only track where Americans drive but also where they charge their vehicles or what music and/or podcasts they listen to while driving.
The investigation comes as BYD, China’s largest electric vehicle maker, is opening a production facility in Mexico, about 200 miles from Mexico City.
Concerns about BYD shipping its 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 vehicles made in China.
Chinese automaker BYD sold three million electric vehicles last year, while the U.S. sold just 1.2 percent of hybrid and electric cars of the 281 million recorded in 2023.
China is “flooding foreign markets with its cars,” Lael Brainard, who heads the president’s National Economic Council, told Congress. New York Times.
“Many of these vehicles can seamlessly connect to our infrastructure, drivers’ smartphones, and nearby cars. “That’s why they’re collecting a huge amount of information,” Brainard said.
President Joe Biden warned that electric vehicles made in China 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 last year in the US, only 1.2 percent were electric or hybrid vehicles.
BYD overtook Tesla as the best-selling electric vehicle maker and is moving to reach additional markets, including Mexico and the Middle East. Still, BYD says it has no intention of entering the US market.
“We are not planning to come to the United States,” said Stella Li, executive vice president of BYD and CEO of BYD Americas. Yahoo Finance.
“We are not even considering any northern states (of Mexico),” Li told the outlet, adding: “We are targeting the local market.” That is BYD’s strategy.”
He cited opposition from lawmakers and the slowing pace of growth in electric vehicles, saying, “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 of Chinese EVs could still entice Americans to purchase the vehicles, as some of the smaller cars sell for as little as $11,000 each, while the average price of an EV in the US it sells for $72,000.
White House investigation into national security risk Chinese automakers pose to Americans comes after experts warned Biden’s green energy plan could allow Chinese companies to “extend their global monopoly” and “dominate” the US market.
The green energy plan offers companies tax credits based on their production, but raised concerns that Chinese companies could access it.
“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 allow its companies to own facilities in the US and access “We 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 adhere to these concerns when he announced the investigation into China’s ramification in the US electric vehicle market.
The Chinese spy balloon entered US territory last year and traversed the United States before being shot down off the coast of South Carolina.
“China is determined to dominate the future of the auto market, including through the use of unfair practices,” Biden said.
“China’s policies could flood our market with its vehicles, posing risks to our national security.”
He added: “I’m not going to let that happen on my watch.”
Biden’s stance on Chinese electric vehicles appears to mirror 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 exemplified by the appearance of the Chinese spy balloon that traversed the United States 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 PRC authorities, jeopardizing national security, economic security and the public health and safety of the United States.”