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In an effort to address national security concerns, U.S. Representative Elissa Slotkin is prepared to present a bill in Congress that aims to restrict or ban Chinese-built connected vehicles if they are deemed a threat.
The introduction of this legislation aligns with escalating tensions in the trade dynamic between the U.S. and China, especially following the Biden administration’s decision to increase tariffs on imports of Chinese electric vehicles by 400%.
While Chinese electric vehicle (EV) companies have yet to establish a substantial foothold in the U.S. market, as opposed to their progress in Europe, the proposed bill seeks to mitigate their potential market impact by introducing restrictions in advance.
Slotkin, who has experience as a CIA analyst and a Pentagon official, has repeatedly cautioned Congress on the risks associated with vehicles from China. In a recent address to the House, she discussed the Chinese government’s significant investment in its automobile sector to sell state-of-the-art, competitively priced EVs with data-gathering technologies.
Slotkin expressed concerns that Chinese connected vehicles could become a conduit for the Chinese government to extract valuable intelligence from the U.S., impacting national elements such as military, infrastructure, and personal locations of leaders.
Last week saw the adoption of provisions advocated by Slotkin into the nation’s defense bill.
The Connected Vehicle National Security Review Act, as titled, would enforce scrutiny over transactions related to EVs and autonomous vehicles (AVs), including manufacturers with Chinese affiliations currently testing in the U.S. such as WeRide and Pony.ai.
Comments from companies like Waymo, which is partnered with the Chinese company Zeekr, were not available regarding the bill.
Even though Volvo and Polestar, owned by Geely of China, do have a commercial presence in the U.S., these automakers maintain that customer data is not shared with China and adhere to privacy laws including the GDPR.
The proposed legislation would empower the Department of Commerce to conduct thorough reviews of connected vehicle transactions involving Chinese companies or those linked to nations that raise security concerns, potentially affecting other nations’ carmakers.
The bill could also impact companies like BYD, potentially barring vehicles manufactured by Chinese entities from entering the U.S., even if produced in third countries like Mexico.
This legislative effort seeks to solidify the Department of Commerce’s role in safeguarding national security interests and ensuring these measures can withstand the test of time and changes in the administration.
Historical context is provided with reference to former President Donald Trump’s attempt to secure the U.S. from risks from platforms like TikTok, owned by China’s ByteDance, and current events relating to China’s data policy developments and its implications for companies like Tesla.
Finally, the Department of Commerce is anticipated to finalize a decision about Chinese connected vehicles later in the year while Slotkin’s bill is expected to be introduced post-Memorial Day recess, on June 3rd.
This content was updated to include a statement from Polestar.
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Frequently Asked Questions (FAQs)
What is the goal of Rep. Elissa Slotkin’s proposed bill?
The goal of the bill is to protect U.S. national security by restricting or banning the introduction of connected vehicles built by Chinese companies into the U.S. market, if they are found to pose a security threat.
How could the Connected Vehicle National Security Review Act affect Chinese EV manufacturers?
It could severely limit or completely ban the sale and importation of connected vehicles made by Chinese companies if they are considered to be a security concern. This would impact Chinese manufacturers’ ability to enter and compete in the U.S. automotive market.
Are any current Chinese EV or AV companies able to operate in the U.S.?
Yes, some companies, like the AV firms WeRide and Pony.ai, are testing their technologies in the U.S., and automakers like Volvo and Polestar, which are owned by China’s Geely, sell vehicles in the U.S. market.
How could the legislation impact data sharing policies of companies with Chinese ties?
The bill could add scrutiny and possibly prevent data collected by vehicles from being shared with China or other countries labeled as security threats, thus affecting the data sharing policies of companies with any kind of Chinese affiliation.
When is this bill expected to be introduced in Congress?
Rep. Slotkin is expected to introduce the Connected Vehicle National Security Review Act after June 3, following the Memorial Day recess of Congress.
