The Biden administration launched an investigation Thursday into internet-connected “smart cars” from China to determine if they can be used to spy on American drivers.
The probe could result in new regulations aimed at limiting the use of certain technologies in connected cars that track drivers and their personal information, such as driver assistance technology.
“China is determined to dominate the future of the auto market, including by using unfair practices,” President Biden said in a statement. “China’s policies could flood our market with its vehicles, posing risks to our national security. I’m not going to let that happen on my watch.”
Connected cars are similar to smartphones on wheels because they can connect to phones, navigation systems, infrastructure and to the companies that made them. Administration officials say they worry all that data is being used by the Chinese government to track Americans.
“It doesn’t take a lot of imagination to figure out how a foreign adversary like China, with access to this sort of information at scale, could pose a serious risk to our national security and the privacy of U.S. citizens,” said Commerce Secretary Gina Raimondo on a conference call with reporters to announce the move.
She also warned that vehicles could be remotely controlled or manipulated by bad actors.
“Imagine if there were thousands or hundreds of thousands of Chinese-connected vehicles on American roads that could be immediately and simultaneously disabled by somebody in Beijing,’’ Ms. Raimondo said. “So it’s scary to contemplate the cyber risks, espionage risks that these pose.’’
Administration officials emphasized that the move is about protecting U.S. national security and not about concerns that Chinese automakers are trying to penetrate the U.S. market. Former President Donald Trump, the Republican frontrunner, has campaigned on imposing steep tariffs on foreign vehicles if elected.
Vehicles available in the U.S. that are made in China, including the Buick Envision, Volvo EX30 and Polestar 2. Ford has also announced plans to build a Lincoln Nautilus in China.
Officials say they are more concerned about the cars made in China by Chinese companies. However, administration officials told reporters they did not have a precise number of such vehicles currently on the road in the U.S. but said there are “very, very few.”
The Biden administration defined connected vehicles as any automobile that includes onboard networks with software systems that communicate through “short-rage communications,” over a cellular network, satellite or other wireless spectrum.
The investigation will be conducted by the Department of Commerce through its Bureau of Industry and Security. It formally declared its intention to perform the investigation through an advance notice of proposed rulemaking.
Under the plan, Commerce will seek information from the auto industry and the public on the nature of the risks and potential steps to mitigate them. Officials will then adopt potential regulations to govern the use of technology in vehicles from China and other countries, including Russia and Iran.
The investigation is the first action taken by the Bureau of Industry and Security under executive orders issued by Mr. Biden to protect domestic information from national security threats.