Chinese automakers are increasingly in the crosshairs of Western governments as they speed overseas expansion with their technology-packed, price-competitive electric vehicles. US President Joe Biden said on Thursday that he has instructed the Commerce Department to begin an investigation over potential national security hazards from Chinese car exports, including EVs, on fears that in-car software and equipment could collect and send sensitive information to Beijing. The move comes months after administration officials had conversations with US automakers, including Tesla, last fall, which said they have faced significant restrictions in selling cars in China, such as tightened rules against data transmission and cloud services. The probe, which will be open for public comments for 60 days, could lead to new restrictions on Chinese cars, which have already been subject to a 25% tariff since 2018, resulting in few Chinese vehicles available to the US market. The White House also passed the Inflation Reduction Act into law last year to strengthen the local supply chain, with China-made EVs and components being ineligible for federal tax credits. Separately, the European Commission, in September, began investigating China-made electric vehicles, which President Ursula von der Leyen said could have enjoyed “huge state subsidies” from Beijing. [New York Times, Reuters]
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