US to issue rules on Chinese connected vehicles this autumn
Adds comments by U.S. Commerce secretary, paragraphs 12-14
By David Shepardson
WASHINGTON, May 15 (Reuters) -U.S. Commerce Secretary Gina Raimondo said on Wednesday that her department plans to issue proposed rules on Chinese connected vehicles this autumn, citing national security risks to the data of Americans.
Raimondo said last week the United States could take "extreme action" and ban Chinese connected vehicles or impose restrictions on them after the Biden administration in February launched a probe into whether Chinese vehicle imports pose national security risks.
Connected cars have onboard integrated network hardware that allows internet access, allowing them to share data with devices both inside and outside the vehicle.
"We expect to have a rule out this fall," Raimondo told a U.S. Senate committee on Wednesday, adding: "The national security risks are quite significant ... We decided to take action because this is really serious stuff."
Raimondo said connected vehicles "have thousands of sensors, thousands of chips - they're controlled by software, which is coming from Beijing in the case of Chinese-made cars. They know where the driver goes, what the driving patterns are, what you're saying in your car. It's a lot of data around U.S. persons that goes right back to Beijing."
The Chinese foreign ministry previously urged the United States "to respect the laws of the market economy and principles of fair competition." It argued that Chinese cars were popular globally not because of "so-called unfair practices" but because they had emerged out of fierce market competition and were technologically innovative.
The White House said in February that the Commerce Department's probe was opened because vehicles "collect large amounts of sensitive data on their drivers and passengers (and) regularly use their cameras and sensors to record detailed information on U.S. infrastructure."
Raimondo said on Wednesday, "It's not totally different than the threat of TikTok, which Congress took action on," referring to legislation passed last month that seeks to force Chinese parent company ByteDance to divest TikTok's U.S. assets or face a ban.
She reiterated prior comments that "you can imagine the most catastrophic outcome theoretically if you had a couple million cars on the road and the software were disabled."
There are relatively few imports of Chinese-made light duty vehicles in the United States.
The Biden administration announced separately this week that it is quadrupling tariffs on Chinese-made vehicles along with putting new tariffs on EV batteries, parts and critical minerals. U.S. officials also face new pressure to restrict Chinese electric vehicle imports from Mexico.
After the hearing, Raimondo declined to comment on what the rule may look like. Asked if it could cover Chinese automakers' vehicles assembled in Mexico, she said: "We have to figure it out. It's still in the process."
At the hearing, she said Commerce is tracking public reports that Chinese automakers are planning to assemble vehicles in Mexico. She wants to ensure they cannot avoid new U.S. tariffs.
"We are going to do whatever we need to do to make sure China doesn't use Mexico to end run around these new tariffs," Raimondo said.
Reporting by David Shepardson in Washington
Editing by Leslie Adler and Matthew Lewis
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
