Biden thinks China is spying on U.S’ automobile industry through EVs, starts investigation

President Joe Biden, emphasising his commitment to safeguarding U.S. auto workers, has initiated a comprehensive investigation to assess the potential threat of Chinese-made vehicles being exploited to spy on American soil.

The move, rooted in national security concerns, comes as the White House underscores the risks associated with “connected” cars that could create “new avenues for espionage and sabotage.”

In a statement released recently, President Biden acknowledged the dual challenges of ensuring national security and protecting the domestic auto industry. “We’re going to make sure the future of the auto industry will be made here in America with American workers,” he affirmed, alluding to the broader economic implications of competition with Chinese electric vehicles (EVs) in the U.S. market.

The concern among U.S. automakers regarding the growing influence of Chinese EVs is palpable, with some industry insiders expressing fears tantamount to a potential “extinction event.” China’s EV industry has rapidly surged ahead of its counterparts in recent years, positioning itself to export vehicles globally, often at considerably lower prices than American EV offerings.

Scott Kennedy, a China specialist at Washington’s Center for Strategic and International Studies, commented on the dual nature of Biden’s announcement. “The announcement seems as much oriented at blunting accusations of being weak against China as it is at finding a solution to this challenge,” he said, highlighting the political and strategic dimensions of the probe.

However, Washington’s Chinese Embassy criticised Biden’s move, accusing him of “hyping up the ‘China threat’ theory” to stifle competition. Despite acknowledging the reasonability of the investigation, Kennedy expressed concerns about potential protectionism stemming from “over-stated national security concerns,” cautioning against the adverse impact on global supply chains and U.S. production.

The announcement has triggered strong reactions from industry stakeholders, with many urging higher trade barriers against Chinese automakers. Both the U.S. and Europe are contemplating such measures, with Tesla CEO Elon Musk warning in January that failure to do so would result in China “demolishing” global auto rivals.

While the Biden administration has not presented any evidence linking Chinese-made cars to espionage activities in the U.S. at present, concerns linger due to China’s history of utilising technology for surveillance purposes. Last year, Washington launched an operation to counter a Chinese hacking operation, underscoring the persistent cybersecurity challenges posed by the geopolitical rivalry.

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