Can China-made cars be used for espionage in US? Joe Biden launches probe

US President Joe Biden recently launched an investigation that seeks to probe if China-made cars can be used for espionage-related activities in his country. Although the number of China-made cars on US roads are microscopically few at present, the probe will reportedly focus on the chances of technologies used in such vehicles that may also be used for spying.

As Biden begins his bid to get re-elected as the US President, a key focus area is to push back against Chinese car makers looking at expanding their respective presence in key global markets. The White House has highlighted that the recently-launched probe will look at the potential of connected cars posing a risk to national security and if these can open ‘new avenues for espionage and sabotage.’

The threat from China carmakers is very real. Most Chinese brands have the capacity to manufacture units in huge numbers and then offer these at prices that are less than what existing manufacturers' models command. China is the world's largest car and electric car market and companies such as BYD, Xpeng and NIO have been targeting foreign shores for some time now.

There is mammoth resistance to Chinese auto brands entering US market with American carmakers in particular ready to press the panic button. Reuters reports that an auto lobbying group has also gone to the extent of terming possibly entry of Chinese car brands could cause ‘an extinction event.’

Cars for America, made in America

The Biden administration has been looking at promoting manufacturing in the US and its recent Inflation Reduction Act (IRA), among many highlights, focuses on subsidies only for electric vehicles (EVs) that have been assembled in North America. This is believed to be directed against manufacturers who primarily import units from China. China had previously hit back against this and termed it a blatant example of protectionism.

But Biden remains determined to thwart Chinese brands even if none of his moves have been expressively overt. Not yet anyway. “We’re going to make sure the future of the auto industry will be made here in America with American workers," he has said.

Interestingly, a number of global - including American brands - depend on the Chinese market to add wind to their respective sails. The Chinese auto market sees local and global brands competing in an intense rivalry for a greater say. The likes of Tesla, Ford and General Motors are present in the market here, either on their own or through partnerships.

You spy, bye-bye

The threat from new-age cars potentially carrying out spying activities is a very real fear in not just the US. In 2021, Chinese authorities had issued a directive to owners of Tesla EVs to not park their cars in and around government, military and other potentially sensitive sites. Beijing had also suspected that Tesla is storing data of Chinese customers at locations outside of China, prompting CEO Elon Musk to publicly announce that that was not the case.

Angering Chinese authorities is out of the question for every carmaker looking at having any form of say in the very lucrative market here. But even as global brands compete for recognition and acceptance here, Chinese automotive companies are yet to breach into the American frontier.

(With inputs from Reuters)